Net-interest income was $11.7 billion, up 6 percent on the year before, with part of that increase driven by loan growth, JPMorgan said in its earnings report.
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The banks net income fell to just over $6.2 billion equal to $1.55 per share compared to a year ago during the same quarter of $6.29 billion equal to $1.54 per share.
Earnings per share of $1.55 handsomely beat the average analyst estimate of $1.43 per share, according to Thomson Reuters I/B/E/S. Analysts had reduced their forecasts for big banks in recent weeks. Investors had been bracing for a second-straight quarter of shrinking profits from JPMorgan as big banks grapple volatile markets and tough regulation.
JPMorgan also generated a slight increase in revenue to $25.2 billion, benefiting from a trading rebound. Despite top executives who make large sums of money, 30.4 percent of bank workers, or 1 in 3, make less than $15 an hour.
JPMorgan is the first of the major USA banks to report quarterly results.
Perhaps more important than the trading bump, Brexit threw into doubt the likelihood of a USA interest rate hike anytime soon.
The delay would extend the post financial crisis period of low rates that have forced banks to look for cuts in expenses to withstand stagnant revenue.
Bank stocks plummeted after the vote and yields on 10-year Treasury notes fell to a record, draining financial firms of interest income. JPMorgan, which lost about 10 per cent of its values in the two days after the June 23rd Brexit referendum, has since recovered most of that decline.
In the first quarter, JPMorgan reported earnings of $1.35 per share on revenue of $24.08 billion.
JPMorgan’s shares rose $1.52, or 2.4 percent, to $64.65 in midday trading.
Revenue from markets, which includes stock and bond trading, increased 23%.
Dimon’s total pay for 2015 rose to $27m from $20m a year ago.
According to Berenberg Banks price target of 52 on the company’s stock this indicates the broker now believes there is a decrease of -17.72% from JPMorgan Chase & Co’s current price of 63.2. The company reported a bottom line beat with an EPS of $1.55 against the consensus estimate of $1.42.
Like other big banks, JPMorgan has struggled to grow its profit due to historically-low interest rates that make it more hard to make money.
In a sign that the USA economy continues to improve, JPMorgan noticeably expanded its loan portfolio in the quarter as a response to increasing demand from both consumers and businesses.
Citigroup and Wells Fargo are scheduled to report results Friday, while Bank of America, Goldman Sachs and Morgan Stanley are due next week.
A consensus of 28 analysts who follow the bank had forecast a profit of $1.43 a share, with projections spread in a range from $1.34 a share to $1.54 a share.
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