JPMorgan Chase (JPM, Financial) reported a 9% increase in net profit for the first quarter, reaching $14.6 billion, surpassing Wall Street's earnings and revenue forecasts. Despite this strong performance, CEO Jamie Dimon warned of global economic uncertainties due to ongoing trade wars and geopolitical tensions.
The bank's market division significantly contributed to its earnings growth, with per-share earnings rising to $5.07, beating the expected $4.63. Total managed revenue climbed to $46 billion, exceeding the anticipated $44 billion.
Current unpredictable tariff policies have caused significant market volatility, posing challenges for the banking sector, which relies on stable conditions and strong credit demand. JPMorgan's market income surged 21% in the first three months, with equity business income soaring 48% year-over-year.
The bank allocated $3.3 billion for bad debt provisions, up from $1.9 billion the previous year, and spent $7 billion on stock buybacks while raising dividends by 12%. JPMorgan's stock rose 2.4% in pre-market trading.
Wells Fargo also reported a strong first-quarter net profit of $4.89 billion, or $1.39 per share, exceeding the forecasted $1.23. CEO Charles Scharf expressed concerns over trade barriers but affirmed the bank's preparedness for a potential economic slowdown. Wells Fargo's stock increased by 1.7% pre-market.
