JPMorgan Q1 profits rise amid 'improving economy'
Jpmorgan Chase Dl 1
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20:24 18/04/24
JPMorgan Chase reported a jump in first-quarter profit on Wednesday, attributing the rise partly to an "improving economy" and the fact it was able to release billons of dollars from its loan-loss reserves.
The bank’s net income rose by $11.4bn to $14.3bn, with diluted earnings per share up to $4.50 from 78 cents in the first quarter of 2020.
The increase in profit was predominantly driven by credit reserve releases of $5.2bn versus credit reserve builds of $6.8bn in the previous year. Excluding significant items such as the reserve release, net income came in at $10.6bn, or $3.31 a share.
Net revenue grew 14% during the quarter to $33.1bn, with non-interest revenue 39% higher at $20.1bn, boosted by higher CIB Markets revenue and higher Investment Banking fees.
Chairman and chief executive officer Jamie Dimon said the results reflect a "strong" underlying performance across the bank's businesses, "partially driven by a rapidly improving economy".
"These results include a benefit from credit reserve releases of $5.2bn that we do not consider core or recurring profits. We believe our credit reserves of $26bn are appropriate and prudent, all things considered," he said.
"With all of the stimulus spending, potential infrastructure spending, continued Quantitative Easing, strong consumer and business balance sheets and euphoria around the potential end of the pandemic, we believe that the economy has the potential to have extremely robust, multi-year growth."