The nation's biggest tax reform in recent memory boosted the first-quarter earnings of JPMorgan Chase (JPM), the nation’s biggest bank by assets, according to numbers released Friday by the financial giant.
Continue Reading Below
First-quarter earnings per share, adjusted to exclude one-time gains and losses, rose to $2.37 on revenue of $28.5 billion. Analysts expected adjusted profit per share of $2.28 on revenue of $27.68 billion.
The strong results offered a glimpse into how tax reform has affected the nation's financial sector. Expectations were that the legislation signed in December by President Donald Trump combined with the strong economic growth and the likelihood that regulations will be rolled back would be good for big banks in general.
The results, which boosted the bank's shares by more than 1% in premarket trading, extended the bank's run of first-quarter earnings gains: A year ago first-quarter results jumped 17 percent to $6.45 billion, or $1.65 a share. Adjusted earnings were $1.57 a share.
"Income tax expense decreased by approximately $240 million despite a $2.0 billion increase in pre-tax income, reflecting the lower income tax rate as a result of the enactment of the Tax Cuts & Jobs Act," the bank said in a statement.
Earlier in the week, Goldman Sachs analysts mentioned in a research note that the downside risks to companies missing earnings expectations will be “substantial.”
JPMorgan earned $4.23 billion back in the fourth quarter, or $1.07 a share. Excluding a $2.4 billion charge tied to the tax bill, the bank would have earned $6.7 billion, or $1.76 a share.
|JPM||JP MORGAN CHASE & CO.||109.32||-0.89||-0.81%|