JPMorgan Chase & Co. reported a profit for the first quarter 2017 that grew 17 percent from last year reflecting higher trading revenue.
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Quarterly revenues rose 6 percent from the prior year.
The latest-quarter results included a tax benefit of $373 million related to the appreciation of the Firm's stock price upon vesting of employee stock-based awards above their original grant price.
Both earnings per share and quarterly revenues topped analysts' expectations.
Net income for the first quarter of 2017 rose to $6.45 billion or $1.65 per share, from $5.52 billion or $1.35 per share in the first quarter of 2016.
Net interest income was $12.4 billion, up 6%, primarily driven by loan growth and the net impact of higher rates. Non-interest revenue was $13.2 billion, up 6%, primarily driven by the Corporate & Investment Bank, largely offset by Card new account origination costs and lower MSR risk management results.
The provision for credit losses was $1.3 billion, down from $1.8 billion, due to net reserve releases in the Wholesale portfolio,partially offset by an increase in the Consumer provision.
The Wholesale net reserve releases were $93 million in the current quarter, primarily driven by Oil & Gas, versus reserve increases of $713 million in the prior -year quarter. The increase in the Consumer provision included a write-down of the Student loan portfolio, and higher Card net charge-offs, which were in line with expectations.
Non-interest expense was $15.0 billion, up 9%, primarily driven by higher compensation and legal expense, auto lease depreciation, and FDIC-related expense, as well as a contribution to the Firm's Foundation.
Markets & Investor Services revenue was $6.5 billion, up 14%, largely driven by higher Markets revenue, up 13%. Fixed Income Markets revenue, up 17%, reflected robust performance in Securitized Products on strong demand and spread tightening.
Net revenue on a reported basis rose to $24.68 billion, from $23.24 billion in the prior year.On a managed basis, net revenue for the quarter was $25.59 billion up from $24.08 billion in the previous year. Analysts expected revenue of $24.88 billion for the quarter.
Corporate & Investment Bank's Net income was $3.2 billion, up $1.3 billion, reflecting higher net revenue, a lower provision for credit losses, and a tax benefit related to the appreciation of the Firm's stock price upon vesting of employee stock-based awards above their original grant price, partially offset by higher non-interest expense. ■