JPMorgan (NYSE: JPM) stock rose over 2% in the early trading hours Monday as the bank announced better-than-expected first-quarter results.
JPMorgan Chase (JPM) recently released its first-quarter earnings report, surpassing estimates for both earnings and revenue, although its net interest income fell short of expectations.
The bank reported adjusted net income of $14 billion, equivalent to $4.63 per share, on total revenue of $41.9 billion. These figures beat analyst estimates compiled by Visible Alpha and surpassed the bank’s first-quarter results from the previous year.
However, net interest income fell below expectations, coming in at $23.2 billion, notably lower than the record-setting $24.1 billion reported in the final quarter of fiscal 2023.
CEO Commentary
During the earnings call on Friday, JPMorgan CEO Jamie Dimon commented on the bank’s performance, noting that its customers are currently “in pretty good shape.” However, he cautioned that various factors such as geopolitical conflicts, high-interest rates, inflation, and the upcoming 2024 presidential election could alter the economic outlook for both consumer and business customers.
Dimon said,
“We’re okay right now, but that doesn’t mean we’re okay down the road.”
He also underscored the need to anticipate a range of potential outcomes and ensure readiness to navigate different economic environments.
In his annual letter to investors last week, Dimon acknowledged the fading likelihood of a “soft landing” and reiterated the bank’s readiness for a scenario of prolonged higher interest rates.
Dimon said in a release Friday,
“There seems to be a large number of persistent inflationary pressures, which may likely continue.”
He added,
“And finally, we have never truly experienced the full effect of quantitative tightening on this scale. We do not know how these factors will play out, but we must prepare the Firm for a wide range of potential environments to ensure that we can consistently be there for clients.”
JPMorgan (NYSE: JPM) Stock Reaction
JPM stock jumped 2.40% to $186.13 on Monday. The traders have exchanged hands with 3,816,254 (3.81 million) shares compared to the average daily trading volume of 8.92 million.
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