JPMorgan Chase & Co tops Q1 forecasts, profits up 12.2%
US investment banking giant JPMorgan Chase & Co on Tuesday grew its profit by 12.2% in the first quarter of this year driven by a surprise rebound in the fixed-income trading division.
Dow Jones I.A.
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JP Morgan Chase & Co.
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The bank reported net income grew to $5.91bn, or earning $1.45 per share, from $5.27bn, or $1.28 a share, in the year ago quarter. That beat market estimates for earnings per share of $1.40. Revenues climbed to $24.8bn
The results for the latest quarter included an after-tax charge of $487m for legal expenses. Over the last two years, JPMorgan has agreed to pay more than $20bn in settlements with regulators, including the sale of mortgage-backed debt in the run up to the financial crisis.
Putting legal and regulatory charges aside, the bright spot for investors is the recovery in the fixed-income, currency and commodity division at JPMorgan after revenues lagged for much of 2014.
JPMorgan posted a jump in fixed-income trading revenues in the first quarter thanks to macro events driving “robust client activity in Fixed Income Markets including in Currencies & Emerging Markets, and Rates, as well as in Equity Markets."
JPMorgan shares rose 1.5% in pre-market trade.