JPMorgan Chase & Co. posted a 52% jump in its first-quarter profits, helped by higher interest rates, which allowed the bank to charge customers more for loans. The bank saw deposits grow noticeably, as business and customers flocked to the banking titan after the failure of
With JPMorgan's strong results, as well as solid results from Citigroup and Wells Fargo on Friday, there seem to be few signs of potential trouble in the banking system — at least among the nation's biggest, most complex financial institutions.
“These were the most watched bank earnings announcements in over a decade, with market participants scouring the results looking for signs of cracks in the US banking sector. Those analysts looking for signs of the banking crisis were greatly relieved to not find any,” said
JPMorgan, the nation's biggest bank by assets posted a profit of
Most of the profit growth came from higher interest rates. The bank's net interest income was
JPMorgan grew deposits by
In a call with reporters, JPMorgan Chief Financial Officer
“What crisis?," analysts at
JPMorgan and CEO
“The
JPMorgan continued to benefit from consumers switching from saving to spending. Credit card spending rose 13% from a year earlier, and more customers are now keeping a balance instead of paying off their credit cards, so the bank is making money from processing the transactions as well as the interest off the balances.
Meanwhile business in the bank's corporate and investment bank remains relatively quiet, as many businesses and investors are holding off making big decisions amid high inflation. Revenue from advisory fees were flat, while revenue from trading stocks and bonds were flat to down.
JPMorgan shares rose more than 6% in early trading.
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