JPMorgan Chase & Co. it has seen a nearly five-fold increase in quarterly profit due to booming markets and the economic recovery that has allowed it to release $ 5.2 billion in funds it has set aside to cover sour loans.
The country’s largest bank reported a record quarterly profit of $ 14.3 billion or $ 4.50 per share, well above $ 3.10 per share forecast by analysts surveyed by FactSet. A year earlier, JPMorgan reported a quarterly profit of $ 2.87 billion or $ 0.78 per share. The bank reported revenue of $ 32.27 billion, up 14% from the previous year.
After the coronavirus pandemic spread to the United States early last year, JPMorgan and other large banks have set aside billions of dollars in loan loss reserves to prepare for a potential flood of implications for consumers and businesses. Rainy day funds have benefited from quarterly profits for much of 2020. But large losses have never materialized, and now banks are now collecting their due diligence.
Wall Street also fueled JPMorgan’s first-quarter results. The corporate and investment bank’s profit tripled to nearly $ 5.74 billion, a quarterly record, and revenues rose 46 percent to $ 14.6 billion. Trading income increased by 25% compared to a year ago, and investment banking fees increased by 57%.
The recovery of the US economy has exceeded the banks’ domestic forecasts. Banks believe that billions of dollars in government incentives through the economy, along with accelerating vaccine distribution, have isolated consumers and businesses from the worst financial scenarios of the pandemic.