Bank’s earnings up

JPMorgan Chase reported first-quarter earnings that easily beat analysts’ estimates Thursday, helped by a steady climb in interest rates from a year earlier as well as gains in investment banking.

The nation’s largest bank by assets reported net income of $6.45 billion, or $1.65 per share, compared with net income of $5.52 billion, or $1.35 a share from a year earlier. Analysts surveyed by FactSet expected the bank to earn $1.51 a share.

As expected, JPMorgan’s bottom line benefited directly from the Federal Reserve’s push to raise interest rates over the past year. Net revenue on a managed basis were $25.59 billion compared with $24.08 billion in the same period a year earlier.

Interest income rose $12.39 billion compared with $11.67 billion a year ago. Wells Fargo and Citigroup, who also reported their quarterly results on Thursday, also reported higher interest income in the first quarter.

The bank also reported solid loan growth in the quarter across both its consumer and business lending businesses.

“We are off to a good start for the year with all of our businesses performing well and building on their momentum from last year,” JPMorgan CEO Jamie Dimon said in a prepared statement.

JPMorgan’s investment banking division also did well, reporting net income of $3.24 billion compared with $1.98 billion in the same period a year earlier. Investment banking revenue rose 34 per cent from year earlier, while JPMorgan’s trading division saw a 14 per cent rise in revenues from a year earlier, helped especially by bond trading.