The largest US bank by assets JP Morgan Chase & Co. It reported an increase in profit for the first quarter by 17%. Creditor's revenues exceeded expectations. The value of shares in premarket trading rose 0.6%.
New York-based bank reported a profit of $ 6.45 billion, or $ 1.65 per share. During the same period last year, JP Morgan earned $ 5.52 billion, or $ 1.35 per share. Analysts polled by Thomson Reuters, expected a profit of $ 1.52 per share. Adjusted JP Morgan's revenues increased by 6.2% to $ 25.59 billion, while analysts had expected revenue of $ 24.88 billion.
Net interest income increased by 6% to $ 12.06 billion in the first quarter, and at the bank's projected to be about $ 4.5 billion for the full year 2017.
JP Morgan income from trading increased by 13% to $ 5.82 billion. Revenue from trading fixed income increased by 17%, in particular due to increased activity in the trading of government bonds and other securities that are closely linked with interest rates. Revenues from equity trading increased by 1.9%.
Revenue in the mortgage division, one of the biggest, fell 18% in the US by volume, to $ 1.53 billion. The total profit of JP Morgan in corporate and investment units was $ 3.24 billion, which is almost two-thirds more than in the same period last year. In the consumer division profit was $ 1.99 billion.
US lender costs increased by 8.5% to $ 15.02 billion from $ 13.84 billion a year earlier.
Shares of JP Morgan rose after the US presidential election, but since the beginning of the year their prices have dropped by about 1%. During the same period, the shares fell in price by 2.7% in the banking sector index Nasdaq.
Based on materials WELTRADE
