JPMorgan Chase & Co. it recorded a nearly five-fold increase in quarterly profits, thanks to market growth and the economic recovery that allowed it to release $ 5 billion in funds it had set aside to cover attacked loans.
The country’s largest bank reported a record quarterly profit of $ 14.3 billion, or $ 4.50 per share, well above the $ 3.10 per share forecast by analysts surveyed by FactSet. A year earlier, JPMorgan reported a quarterly profit of $ 2.878 billion, or $ 0.78 per share. The bank reported revenue of $ 32.27 billion, up 14% from the previous year.
After the coronavirus pandemic consolidated in the United States early last year, JPMorgan and other large banks set aside billions of dollars in loan loss reserves to prepare for a possible flood of defaults. commercial and consumer. Funds for Rainy Day affected quarterly profits for much of 2020. But the big losses never materialized and now banks are charging their due diligence.
Wall Street also boosted JPMorgan’s first-quarter results. Corporate and investment banking profit nearly tripled to $ 5.74 billion, a quarterly record, and revenue rose 46% to $ 14.6 billion. Commercial income rose 25% from a year ago and investment banking fees rose 57%.
The rebound in the US economy has exceeded banks’ domestic forecasts. Banks believe billions of dollars in government incentives running through the economy, along with accelerating vaccine distribution, have isolated consumers and businesses from the worst financial scenarios of the pandemic.