J.P. Morgan Chase reported record results and revenues from the first quarter that exceeded analysts' expectations as the bank benefited from higher interest rates.
Stocks rose 2.5 percent in premarket trading.
"We had record income and net income, strong performance across all our major businesses and a more constructive environment, says CEO Jamie Dimon I a statement.
"Even in a global geopolitical uncertainty, the US economy continues to grow, employment and wages are rising, inflation is moderate, financial markets are healthy, and consumer and business understanding are still strong," he added.
J. P. Morgan, the largest US bank of assets, is the first major lender to report earnings. The results may deprive the fear of the sector after the Federal Reserve signaled pending interest rate hikes for the rest of the year. Combined with signs of a global downturn in the economy, the bank's stock markets were penalized by the fact that the reverse yield curve shrinks the industry's profit margins and signals a possible downturn on the horizon. However, J.P. Morgan's performance showed that it was still beneficial for Fed's last step to increase its reference rate in December, the fourth time the increased prices last year.
It was most clearly in the bank's consumer lending department, one of the two largest segments for the company. Earnings increased by 19 percent to $ 3.96 billion, while revenue rose 9 percent to $ 13.8 billion. The division increased the profit margin on deposits and increased loans over credit cards and auto units. Meanwhile, the provision for credit losses remained flat at USD 1.3 billion from the year before.
The company, led by Dimon since 2005, has resumed its pattern of exceeding analysts' profit expectations. In the fourth quarter, the bank was subordinated to having hit expectations of 15 straight quarters on tough trading results.
In February, the bank said that trading revenues in the first quarter were on the way for a percentage of "high troughs" from the year before, as both stocks and interest bearers fought through slower client activity.
This warning turned out to be true. In J.P. Morning's investment bank, the largest in the world after sales, fell trading revenue in the first quarter 17 percent to $ 5.5 billion. Excluding the effect of one year's previous accounting changes, bond trading fell 8 percent and equity trading's turnover fell 13 percent. Banking income increased by 8 percent to $ 3.2 billion on higher debt guarantees and advisory fees. The total division's profit of $ 3.25 billion was 18 percent lower than the year before.
J.P. Morgan's asset management division said earnings fell 14 percent to $ 661 million at lower market levels and brokerage in the quarter. The company's commercial bank generated a profit of $ 1.05 billion, 3 percent higher than the year before.
Nevertheless, the bank continued to make long-term investments in its business. JP Morgan said it is expanding the interface network to cover almost the entire US population by 2022. It also announced the first crypto competition from a major US bank and pledged $ 350 million to increase the job cycles of sub-customers.  This is what Wall Street expected:
Earnings: $ 2.35 per share, down 0.7% from the previous year, according to Refinitiv.
Revenue: $ 28.4 billion, down 0.3% from the previous year.
Net Interest margin: 2.57%, according to FactSet
Trading revenue: Fixed income $ 3.64 billion, shares $ 1.76 billion