JPMorgan Chase (NYSE:JPM), the biggest U.S. bank, posted quarterly profit that topped analysts’ estimates as revenue from bond trading improved. Shares advanced in morning trades.
Net income rose to $5.91 billion, or $1.45 per share, in the January-to-March quarter, from $5.27 billion, or $1.28 per share, a year earlier, the New York-based company said in a statement today.
Revenue increased to $24.8 billion from $23.86 billion a year ago.
Analysts on average had predicted earnings of $1.40 on revenue of $24.50 billion, according to Capital IQ.
JPMorgan, the world’s biggest investment bank, said revenue from fixed-income bond trading rose 5 percent to $4.07 billion, adjusted for the sale of businesses last year, including a commodities operation. Equity-trading revenue advanced 22 percent to $1.61 billion.
The bank said it was increasing its second quarter dividend from to $0.44 per share from $0.40 per share.
Shares advanced 1.8 percent to $63.16 at 9:33 a.m. in Toronto.
“We have an outstanding franchise which is getting safer and stronger, and is gaining market share over time,” chief executive officer Jamie Dimon said in the statement.
“We continue to build the company for the long-term, we are investing in controls, infrastructure, systems, technology, new products and bankers.”
JPMorgan also reported an after-tax charge of $487 million for legal expenses. And it set aside a total of $959 million to cover bad loans, $109 million higher than a year earlier.
Profit from consumer and community banking increased 12 percent to $2.22 billion as revenue advanced 2 percent and expenses declined 4 percent.
JPMorgan said profit in asset management increased 11 percent to $502 million. Assets under management climbed $111 billion to $1.8 trillion amid greater inflows and rising equity markets.
Commercial banking posted a 1 percent profit increase to $598 million. The division’s provision for credit losses was $61 million, up $56 million from a year earlier as the bank set aside more reserves related to loans to energy companies.
Meanwhile, Wells Fargo (NYSE:WFC), the largest mortgage lender in the U.S., reported a 2.6 percent fall in profits in the first three months of the year and set aside more money to cover bad loans. Shares fell 1.2 percent to $54.59.