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JPMorgan earnings beat expectations, stock jumps

JPMorgan Chase (JPM), the largest U.S. bank by assets, reported record revenue and profit for the first quarter on Friday.

For the first quarter, the bank posted adjusted earnings per share of $2.65, versus analysts’ forecasts of $2.35.

Adjusted revenue for the quarter came in at $29.9 billion, outpacing estimates of $28.36 billion.

“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. Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong,” CEO Jamie Dimon said in a statement.

JPMorgan Chase CEO Jamie Dimon REUTERS/Jeenah Moon

Dimon also remained upbeat on the U.S. consumer, noting that the bank continues to grow its retail bank branch footprint.

“In Consumer & Community Banking, client investment assets topped $300 billion, with record new money driven by our physical and digital channels. Consumer spending remains robust with credit card sales and merchant processing volume up double digits. We continued to execute on our expansion plans, announcing 90 branches this year in new markets, and creating tremendous opportunities for each of our businesses to better serve our clients.”

Breaking the results down further, consumer and business banking revenue jumped 15% to $6.6 billion, driven by higher net interest income due to higher deposit margins and balance growth. Net interest income rose 8% to $14.6 billion, “predominantly driven by the impact of higher rates, as well as balance sheet growth and mix.”

Revenue from fixed trading came in at $3.7 billion, down 8% from the same period a year ago. The bank pointed to lower revenue in currencies and emerging markets and rates.

Meanwhile, equity markets revenue came in at $1.7 billion, down 13% from the year prior. That drop in trading revenue "reflected lower client activity, predominantly in derivatives."

Elsewhere, investment banking revenue was up 10% from a year ago to $1.7 billion, driven by strength in debt underwriting.

"Investment Banking results were strong – particularly in debt underwriting and advisory – as the Firm maintained its #1 rank in Global IB fees and Commercial Banking generated record gross IB revenue," Dimon said. "As the environment stabilized, the Markets business performed solidly, although down from a particularly strong prior-year quarter. And Asset & Wealth Management grew AUM 4% with continued net long- term inflows.”

Last quarter, JPMorgan reported a rare miss of analysts expectations. During that quarter, JPMorgan was undermined by a drop in fixed income trading and volatile markets.

JPMorgan’s stock, traded on the New York Stock Exchange, rose in the pre-market. Other big bank stocks were also trading higher.

Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.