JPMorgan Chase (JPM) has reported substantially higher first-quarter earnings for 2021. The US bank was boosted by a strong quarter from its trading desks as well as rising investment banking fees.
JPMorgan, widely seen as a barometer of the health of the broader US economy, was also helped by favourable comparisons to last year when the COVID-19 pandemic forced the bank to build reserves against the risk of massive loan defaults.
Net income rose to $14.3bn, or $4.50 a share, in the quarter ended 31 March, from $2.9bn, or 78 cents a share, a year earlier.
Banks stocks rising
According to Refinitiv, analysts had been expecting earnings on average of $3.10 a share. Bank stocks have performed strongly of late along with the likes of JPM, Goldman Sachs and Morgan Stanley leading the charge.
Commenting on the latest estimates and prospects going forward, chief executive officer Jamie Dimon said: “We believe that the economy has the potential to have extremely robust, multi-year growth. Our credit reserves of $26bn are appropriate and prudent, all things considered.”