JPMorgan Chase & Co. achieved a nearly fivefold increase in quarterly profits, thanks to booming markets and an economic recovery that made it possible to release $ 5.2 billion in funds they set aside to cover loans.
The country’s largest bank posted a record quarterly profit of $ 14.3 billion, or $ 4.50 per share, well above the $ 3.10 per share forecast by analysts polled by FactSet. A year earlier, JPMorgan reported a quarterly profit of $ 2.87 billion or $ 0.78 per share. The bank showed revenue of $ 32.27 billion, up 14% from a year earlier.
After the coronavirus pandemic took hold in the US early last year, JPMorgan and other major banks set aside billions of dollars in loan loss reserves to prepare for a possible flood of defaults for consumers and businesses. The rain funds had a quarterly profit for a large part of 2020. But huge losses never materialized, and now banks are now earning their thorough money.
Wall Street also drove JPMorgan’s results in the first quarter. Corporate and investment bank profits nearly tripled to $ 5.74 billion, a quarterly record, and revenue rose 46% to $ 14.6 billion. Trading revenues increased by 25% compared to a year ago, and fees for investment banking services by 57%.
The downturn in the US economy exceeded the internal forecasts of banks. Banks believe the billions of dollars in government stimulus are accompanied by the economy, coupled with the faster distribution of vaccines, have isolated consumers and businesses from the worst financial scenarios of the pandemic.