JPMorgan Chase (JPM), the largest bank in the United States with $3.67 trillion in assets, has reported better-than-expected first-quarter profit and revenue. The bank posted a profit of $12.6 billion or $4.10 per share, up 52% from the same period last year, surpassing analysts’ expectations of $3.41 per share, according to Refinitiv.
JPMorgan Chase also raised its net interest income guidance for 2023 to be around $81 billion, up $7 billion from its previous estimate.
CEO Jamie Dimon commented on the state of the US economy, stating that it is on generally healthy footing with strong consumer spending and business balance sheets. However, he also noted that there are lingering concerns on the horizon.
Deposits at JPMorgan Chase rose to $2.38 trillion during the first quarter, following last month’s banking turmoil that triggered a rush of nervous customers into big banks and money market funds as a safe haven.
Dimon reassured investors that he is not worried about a credit crunch after the recent banking crisis, but highlighted the need for companies to be prepared for the possibility of higher interest rates remaining for longer than expected. JPMorgan Chase also clarified that its exposure to office space is limited, with less than 10% of its portfolio focused on urban dense markets in the office sector.
Shares of JPMorgan Chase rose 6.7% on Friday morning. The bank’s performance and outlook are closely watched as it serves as a bellwether for the US economy.