JPMorgan profit jumps 17 percent on trading surge, underwriting

JPMorgan profit jumps 17 percent on trading surge, underwriting

JPMorgan Chase & Co (JPM.N) reported a nearly 17 percent jump in quarterly profit on Thursday, thanks to a surge in trading activity and securities issuance that helped its Wall Street businesses.

The largest U.S. bank earned $6.4 billion in the first quarter, or $1.65 per share, up from $5.5 billion, or $1.35 per share a year earlier.

Analysts had expected earnings of $1.52 a share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported results were comparable.

JPMorgan shares were up 1 percent to $86.25 in premarket trading.

The bank's markets-related revenue, particularly in fixed income, grew as investors repositioned portfolios in response to the Federal Reserve hiking interest rates as well as elections in Europe and Britain's progress in leaving the European Union.

Overall, JPMorgan's corporate and investment banking division reported a 17 percent rise in revenue, the biggest gain among its four major business lines.

The bank reported growth in both loans and deposits as the economy expanded, even as the pace of loan growth across the U.S. banking industry has slackened recently.

JPMorgan's net interest income, which represents the difference between its cost of money and how much it receives for the funds, grew 6 percent, amid loan growth and higher rates. Average loans for the period, excluding those in run-off portfolios left from acquisitions, were up 9 percent from a year earlier.

The mortgage business was a dark spot in the bank's results, with mortgage fees and loan servicing revenue tumbling 39 percent to $406 million, from $667 million.

Higher rates have dissuaded borrowers from refinancing, and JPMorgan executives said in February they expected non-interest mortgage revenue to fall throughout the year.

In a statement, Chief Executive Jamie Dimon said U.S. consumers and businesses are "healthy overall" and that the economy could further improve if the government pursues pro-growth initiatives.

Wells Fargo & Co (WFC.N) and Citigroup Inc (C.N) are also scheduled to report results on Thursday.

Source:- http://www.reuters.com/article/us-jpmorgan-results-idUSKBN17F1B4?il=0

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James Rock

My name is James from Boston; and a freelance writer for multiple publications and a content writer for News articles. Most articles have appeared in some good newspapers. At present above 1000+ articles are published in Biphoo News section.

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