JPMorgan first quarter results beat expectations

JPMorgan Chase & Co posted a drop in first quarter profit and revenue, partly on the back of weakness in its investment banking and trading businesses, but the results were better than analysts had expected.

The bank reported a 6.7% decline in first-quarter net income from a year earlier to $5.5bn, or $1.35 a share, versus estimates of $1.26.

Meanwhile, revenue fell 3% to $24.1bn, which was also ahead of expectations of around $23bn.

Profit at the corporate and investment bank slid 22% from the previous year to $1.98bn but profit from the consumer bank was up 12% to $2.49bn.

The asset management business saw profit rise to $587m from $502m the year before.

Return on equity – which measures the bank’s profitability – came in at 9% from 11% in the same quarter a year ago.

Chief executive officer and chairman Jamie Dimon said: “We delivered solid results this quarter with strong underlying drivers. The consumer businesses continue to grow loans and deposits impressively, attracting deposits faster than the industry. The US consumer remains healthy and consumer credit trends are favourable.

“While challenging markets impacted the industry, we maintained our leadership positions and market share in the Corporate & Investment Bank and Asset Management, reflecting the strength of our platform. Even in a challenging environment, clients continue to turn to us in the global markets and we saw positive net long-term asset flows in Asset Management.”

Earlier, Reuters reported that JPMorgan cut 5% of the headcount at its Asia wealth management business.