Business

JPMorgan beats, profits jump 35%

Jamie DimonREUTERS/Dylan Martinez

JPMorgan Chase announced first-quarter earnings results Friday morning,posting earnings per share of $2.37. Analysts had expected earnings per share of $2.28. 

The beat was driven by gains across every key business line, with higher rates benefitting most of the bank’s businesses. Here are the key numbers:

  • Revenue: $27.9 billion, up 10% from last year
  • Adjusted net income: $8.7 billion, up 35% from last year. 
  • Adjustments: The results included a $505 million gain from “related to the adoption of new recognition and measurement accounting guidance for certain equity investments previously held at cost.” That added $0.11 in earnings per share.
  • Consumer and community banking: Net income increased 67% to $3.3 billion, on revenue of $5.7 billion, as the bank benefitted from higher rates.
  • Corporate and investment banking: Net income was up 23% to $4.0 billion, on revenue of $10.5 billion. That was in part driven by accounting adjustments in the markets business. Excluding those gains, markets revenues were up 7%. Banking revenues fell slightly, down 3%. 
  • Commercial banking: Net income was up 28% to $1 billion, driven by higher net interest income.
  • Asset and wealth management: Net income was $770 million, up 100% from a weak period a year earlier. 

“2018 is off to a good start with our businesses performing well across the board, driving strong top-line growth and building on the momentum from last year,” JPMorgan CEO Jamie Dimon said in a statement.

The fourth-quarter of 2017, by comparison, was noisy and uneven thanks in part to the new tax law, which caused many banks to book one-time losses on repatriated cash and deferred tax assets that declined in value.

JPMorgan took a $2.4 billion hit from the new law last quarter.

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