J.P. Morgan posts record revenues, shares fly

J.P.Morgan shares jumped in trading before the opening bell on Wall Street after the banking heavyweight handily beat estimates on the Street for its first quarter results.

The lender posted record revenues for the three months ending on 31 March of $38.3bn, up 25% on a year ago, for a 52% surge in net income to reach $12.6bn and a bumper return on average tangible common equity of 23%, which was up from 16%.

As a result its Tier 1 common equity ratio capital buffer hit 13.8%.

"Our years of investment and innovation, vigilant risk and controls framework, and fortress balance sheet allowed us to produce these returns, and also act as a pillar of strength in the banking system and stand by our clients during a period of heightened volatility and uncertainty," J.P. Morgan boss, Jamie Dimon said.

Credit loss provisions rose by 56% to $2.28bn.

In Consumer and Community Banking, net income surged 80% versus the year earlier periof to roughly $5.24bn, in Corporate and Investment Banking by 1% to $4.4bn, in Commercial Banking by 58% to $1.35bn, in Asset and Wealth Management by 36% to $1.37bn and in Corporate the lender swung to a profit of $244m versus $856m of red ink one year before.

On the outlook, he highlighted consumers' strong balance sheets. Yet while the banking situation was different from 2008, the lender did not know if it would slow consumer outlays.

The banker added that the lender was continuing to monitor the risk of inflation and interest rates remaining higher for longer and the geopolitical tensions as regarded relations with China and the unpredictable war in Ukraine.

"While we hope these clouds will dissipate, the Firm is prepared for a broad range of outcomes, and we are confident that we can serve the needs of our customers and clients in all environments."

As of 1231 GMT, shares in the lender were trading 5.88% higher to $136.58.