Friday, 20 September 2019 08:12 GMT

Trading, investment banking boost JPMorgan earnings

(MENAFN - AFP) JPMorgan Chase's quarterly earnings rose Tuesday on better investment banking and trading results and higher overall revenues.

Net income for the first quarter was $5.9 billion, up 12.2 percent from the year-ago period.

The results, which topped analyst expectations, were a positive start to a series of earnings reports from large banks this week, including Bank of America and Goldman Sachs.

"Bottom line: JPMorgan more than delivered," said a note from Credit Suisse. "The bar is set high for those that follow."

Profits in corporate and investment banking surged 19.4 percent, thanks in part to a recovery in trading segments for equities, fixed income and foreign exchange.

JPMorgan, the largest US bank in assets, said its trading performance benefited from "macro events," which drove fluctuations in the dollar and other currencies that can lead to more trading.

Consumer and community banking was also strong, jumping 12 percent in part due to higher income in mortgage banking.

The results were pulled down somewhat by $487 million in legal expenses.

However, these legal charges were still well below the multi-billion dollar hit in some recent quarters. Earnings for the December 2014 quarter suffered from a $1 billion legal charge.

JPMorgan chief financial officer Marianne Lake said the bank hopes to reach "an acceptable resolution over the coming weeks" to a Department of Justice probe into manipulation of the foreign exchange market.

JPMorgan also continues to face regulatory scrutiny over its hiring of relatives of powerful Chinese officials.

Chief executive Jamie Dimon, who has resisted calls from some politicians and financial analysts to break up JPMorgan, said the results showed the strength of its diverse businesses.

"We have an outstanding franchise which is getting safer and stronger, and is gaining market share over time," Dimon said.

"We continue to build the company for the long-term, we are investing in controls, infrastructure, systems, technology, new products and bankers."

Overall bank revenues rose 4.1 percent to $24.82 billion, more than the $24.41 billion projected by analysts.

Net income translated into $1.45 per share, five cents above analyst forecasts.

JPMorgan shares rose 1.9 percent to $63.24 in midday trade.

Trading, investment banking boost JPMorgan earnings

  Most popular stories  

Day | Week | Month