JPMorgan Chase & Co. (NYSE:JPM) reported better-than-expected first-quarter results early on Friday as major banks began earnings season for the period, with Chief Executive Jamie Dimon saying the US economy is growing even with some global uncertainty.
Revenue on a reported basis rose to $29.1 billion, which the investment management firm said was a record, from $27.9 billion in the comparable quarter of the year earlier period. Analysts on Capital IQ were looking for $28.05 billion.
Net income rose to $2.65 a share from $2.37 a year earlier, while analysts were looking for a two-cent year-on-year decline to $2.35 a share. The provision for credit losses rose to $1.5 billion from about $1.2 billion a year earlier.
“In the first quarter of 2019, we had record revenue and net income, strong performance across each of our major businesses and a more constructive environment,” Dimon said. “Even amid some global geopolitical uncertainty, the US economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong.”
Revenue in consumer and community banking rose to $13.77 billion from $12.6 billion a year earlier, driven by higher net interest income from stronger deposit margins and balance growth, the bank said. Home lending revenue fell 11% while card, merchant services and auto rose 9%.
Declines of 12% in markets and investors services revenue weighed on the corporate and investment bank segment, which posted a 6% annual decline in revenue. Banking revenue in the division rose 8%.
Commercial banking revenue rose 8% to $2.3 billion, driven by “a number of large investment banking transactions and higher deposit margins, which were partially offset by lower deposit balances,” the bank said.