- The bank said profit jumped 35% thanks to lower taxes and rising interest rates.
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JPMorgan is rallying after earnings (JPM)
The bank topped analyst expectations for the first quarter.
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Shares of JPMorgan rose about 1.4% in early trading Friday after the bank reported earnings that beat Wall Street’s expectations and showed a 35% jump in profit thanks to lower taxes and rising interest rates.
The US's largest bank by assets reported earnings of $2.37 per share on revenue of $27.9 billion. Analysts polled by Bloomberg had expected earnings of $2.28 and revenue of $27.71 billion.
"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.
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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.
"While the bank’s revenues in Corporate & Investment Banking (CIB) predictably bounced back— helped by a marked increase in market volatility—from an awful Q4 2017, the bank was even able to beat CIB’s strong performance in Q1 2017," Octavio Marenzi, CEO of capital markets consulting firm Opimas said in an email.
"However, more impressive than this was the bank’s growth in Consumer & Community Banking (CCB), which accounted for most of the bank’s gains this quarter – this despite some softness in mortgage lending due to increasing interest rates."
Shares of the bank are up 5% so far in 2018.
Citigroup and Wells Fargo will also report earnings Friday morning.
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