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JPMorgan Chase (NYSE:JPM) surpassed Wall Street's expectations for first-quarter earnings, fueled by record-high revenue from equities trading and increased activity in debt underwriting and mergers.
The largest U.S. bank posted net income of $14.6 billion, or $5.07 per share, for the quarter ending March 31, up from $13.4 billion, or $4.44 per share, a year earlier. Excluding special items, earnings were $4.91 per share, above the $4.61 consensus forecast compiled by LSEG.
Trading income surged 21% to $9.7 billion, with stock trading revenue jumping 48% to an all-time high of $3.8 billion. Investment banking fees also climbed 12%, helped by market optimism around President Donald Trump's expected economic measures, including potential tax cuts and regulatory rollbacks.
However, JPMorgan increased its provision for credit losses to $3.3 billion from $1.9 billion, signaling concern that rising tariffs could strain borrowers if inflation and economic pressures intensify.
CEO Jamie Dimon cautioned that geopolitical tensions and trade disputes were contributing to elevated uncertainty. He added that clients were showing more restraint in the face of volatile markets and potential long-term risks from the ongoing tariff policy shifts.
Net interest income rose 1% to $23.4 billion. The bank now anticipates $94.5 billion in net interest income for the full year, up slightly from its previous estimate.
Despite a 3% pre-market gain on Friday, JPMorgan shares have fallen roughly 8% since the tariff announcement and reached a seven-month low earlier this week.
This article first appeared on GuruFocus.