JPMorgan Chase reported strong increases in revenue and earnings per share, largely due to major growth in investment banking fees and its markets division.
The company’s managed revenue was US$46 billion, up from $42.5 billion year-over-year and surpassing estimates of $44.1 billion.
“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility. As always, we hope for the best but prepare the Firm for a wide range of scenarios,” said JPMorgan Chase CEO Jamie Dimon.
JPMorgan Chase’s net income was US$14.6 billion, rising from $13.4 billion in the previous year. The company’s average loans increased by 2% year-over-year to $1.3 trillion.
Its diluted earnings per share were US$5.07, up by $0.63 and beating estimates of $4.61. JPMorgan Chase’s acquisition of First Republic Bank in 2023 led to a one-time gain of $0.16 per share last quarter, the company said.
JPMorgan Chase’s Consumer and Community Banking segment saw average loans rise by 1% while deposits fell by 2%. Its net income fell by 8% to $4.4 billion, while its revenue rose by 4%.
In its Corporate and Investment Banking division, investment banking fees increased by 12% year-over-year, the highest globally. The company held 9% wallet share last quarter, and the division’s net income rose by 5% to US$6.9 billion.
Investment banking fees declined by 9% from the fourth quarter of 2024, however. “Clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions,” said Dimon.
Markets revenue increased by 21% to US$9.7 billion, as trading activity surged. Equity markets revenue increased by 48% year-over-year.
Its Asset and Wealth Management arm saw net income increase by 23% year-over-year to US$1.6 billion, with revenue and expenses rising by 12% and 7% respectively.
Around US$840 billion of credit and capital was raised last quarter, the company said.
“We continue to believe it is prudent to maintain excess capital and ample liquidity in this environment,” Dimon said. The company’s common equity tier one ratio was 15.4%, and it retains US$1.5 trillion in cash and marketable securities.
Morgan Stanley also beat estimates in its earnings last quarter, with Goldman Sachs and Citigroup due to report this week.
JPMorgan Chase’s share price closed at US$236.20, up from its previous close at $227.11. Its market capitalisation is $657.3 billion.
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