JPMorgan Trades Higher After Q1 Earnings Beat, Record Revenue

Shares of JPMorgan Chase & Co. JPM gained more than 3 percent Friday after reporting a first-quarter earnings beat.

What Happened

JPMorgan said it earned $2.65 per share in the first quarter on revenue of $29.1 billion versus expectations of $2.35 per share and $28.47 billion. Net income for the quarter rose from $8.712 billion in the same quarter a year ago to $9.179 billion.

By segment, Consumer & Community banking revenue rose 9 percent to $13.751 billion, Corporate & Investment Bank revenue fell 6 percent to $9.848 billion, Commercial Banking revenue rose 8 percent to $2.338 billion, Asset & Wealth Management revenue was flat at $3.489 billion, and Corporate revenue more than tripled from $127 million to $425 million.

Net interest income rose 8 percent from last year to $14.6 billion, mostly due to the impact of higher rates, balance sheet growth, and a favorable mix, the company said. Book value per share rose 6 percent to $717.78 and tangible book value per share rose 7 percent to $57.62 million.

Why It's Important

JPMorgan CEO Jamie Dimon said the bank realized record revenue and net income with "strong performance" seen across all major businesses. The bank performed well despite "some global geopolitical uncertainty" but the US environment remains positive with employment and wages rising and inflation moderating.

JPMorgan reaffirmed its commitment to allocating capital, people, and expertise to "drive great outcomes" for communities, the press release said. The company also said it needs to cooperate with businesses, governments, and communities to "solve problems that help strengthen the economy for everyone's benefit."

The stock traded higher by 3.2 percent at $109.60 per share at time of publication.

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Photo credit: Joe Mabel, Wikimedia