JPMorgan reports $14.6 billion Q1 profit
JPMorgan delivers $14.6 billion in Q1 earnings as trading surges
JPMorgan Chase reported better-than-expected earnings for the first quarter of 2025, driven by strong trading results and higher investment banking fees, even as the economic outlook grows increasingly uncertain.
The bank posted net income of $14.6 billion, or $5.07 per share, up from $13.4 billion, or $4.44 per share, a year earlier. On an adjusted basis, earnings came in at $4.91 per share, beating analyst forecasts of $4.61, reports Reuters.
Equities trading led the way with a 48% jump to a record $3.8 billion, as market volatility fueled by shifting trade policy drove portfolio rebalancing and speculative activity. Overall trading revenue rose 21% to $9.7 billion. Investment banking also benefited from favorable conditions, with fees rising 12% amid an early-year surge in optimism over potential pro-growth moves from President Donald Trump, including expectations of deregulation and tax reform.
Net interest income (NII), a critical measure of profitability, edged up 1% to $23.4 billion. JPMorgan slightly raised its full-year NII forecast to $94.5 billion from $94 billion, while holding steady on its $90 billion guidance excluding market-related income.
Dimon Cautions on Inflation, Credit Risks From Tariffs
Despite the strong performance, CEO Jamie Dimon warned of emerging risks tied to Trump's recent tariff escalations. “Clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions,” Dimon said, noting that the economy faces "considerable turbulence."
The bank increased its credit loss provisions sharply to $3.3 billion from $1.9 billion last year, anticipating potential loan stress should inflation return or growth slow. Dimon added in recent interviews that prolonged trade conflicts could lead to long-term inflation and higher fiscal deficits.
Although JPMorgan shares rose around 3% in pre-market trading Friday, they have fallen approximately 8% since Trump's announcement of steep reciprocal tariffs. The administration has since paused some of the levies, but uncertainty continues to weigh on financial stocks.
Additionally, JPMorgan’s chief global economist, Bruce Kasman, has issued a grim forecast regarding President Donald Trump’s aggressive tariff policy, warning that the global economy is facing a significant downturn.
