JPMorgan’s net income grew by 9% to $14.6 billion in the first quarter, surpassing Wall Street’s profit and revenue expectations. However, CEO Jamie Dimon warned that global economic uncertainties, driven by President Donald Trump’s ongoing trade war and other geopolitical tensions, could affect the bank’s future performance.
Dimon mentioned that the bank’s strong results were helped by its markets division, but he added that trade tensions were a potential risk for both the bank and the broader economy.
JPMorgan’s earnings per share increased to $5.07 from $4.44 last year, beating Wall Street’s estimate of $4.63 per share, according to data from FactSet. Total managed revenue reached $46 billion, up from $41.9 billion a year ago, exceeding the expected $44 billion.
Trump’s unpredictable tariff hikes — currently 10% for most U.S. trading partners and 145% for China — have caused significant market volatility and uncertainty about the global economy. This instability is concerning for banks, which depend on stability and healthy consumer and business activity to thrive.
The bank’s trading desk performed well in the first quarter, benefiting from market volatility, which began even before Trump’s “Liberation Day” tariffs on April 2.
JPMorgan’s market revenue increased by 21%, with equities revenue rising by 48% compared to last year.
Revenue from consumer and community banking rose by 4%, reaching $18.3 billion.
Wells Fargo Office in New YorkRegarding the trade war with China, which raised its tariffs on U.S. imports to 125%, JPMorgan executives said it was too soon to make any long-term predictions about the impact on the bank’s business in China.
“We really have to see how things play out,” said Chief Financial Officer Jeremy Barnum. “In the near term, that business is performing fine and we are not seeing any effect.”
JPMorgan set aside $3.3 billion to cover potential bad loans, up from $1.9 billion a year ago. The bank also repurchased $7 billion of common stock and increased its dividend by 12%.
JPMorgan’s shares rose by 2% in morning trading, while broader Wall Street indexes fluctuated between small losses and gains, without the extreme swings seen in recent weeks.
Morgan Stanley, another investment bank, also surpassed Wall Street’s first-quarter expectations. The New York bank posted net income of $4.3 billion and revenue of $17.7 billion, a record high. Its shares fell by 1.6%.
Wells Fargo reported first-quarter net income of $4.89 billion, or $1.39 per share, beating analysts’ estimate of $1.23 per share. CEO Charles Scharf said, “We support the administration’s willingness to look at barriers to fair trade for the United States, though there are certainly risks associated with such significant actions.” He added that the bank is “prepared for a slower economic environment in 2025.”
