JPMorgan profit eases economic fears

Credit: Reuters - Business (Amazon FireT
Published on April 12, 2019 - Duration: 01:02s

JPMorgan profit eases economic fears

JPMorgan Chase's quarterly profit rose and easily beat estimates, easing fears that slowing economic growth could weigh on its results.

Fred Katayama reports.

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JPMorgan profit eases economic fears

JPMorgan's strong quarterly earnings report Friday MAY HELP dispel INVESTORS' fears of a slowing economy.

THE LARGEST U.S. BANK SAW PROFITS RISE, easily BEATING estimates, and revenue increased across most of its businesses.

AND BECAUSE OF ITS SIZE and breadth, JPMORGAN IS often seen as a barometer of U.S. ECONOMIC STRENGTH.

Investors got some reassurance from chief financial officer Marianne Lake, who said the bank was "quite optimistic about the outlook for the economy." JPMorgan shares ROSE more than 4 percent Friday to a four-month high, and that helped lift the Dow and S&P 500 sharply higher at the market open.

Underscoring the strong performance: consumer loans grew 4 percent from a year ago, and commercial banking revenue shot up 8 percent.

The report, however, wasn't without some warning signs.

A key metric of loan profitability grew at a slower pace, trading revenue fell, and the bank set aside $90 million for potential credit losses in commercial loans.

But investors were willing to overlook that.

JPMorgan's strong quarterly earnings report Friday helped dispel growing fears of a slowing economy.

Profit rose and easily beat estimates, and revenue increased across most of its businesses.

The U.S.'

Largest bank is often seen as a barometer of the economy.

Investors got some reassurance from chief financial officer Marianne Lake, who said the bank was "quite optimistic about the outlook for the economy." They drove JPMorgan shares up more than 4 percent Friday to a four-month high, and that helped lift the Dow and S&P 500 sharply higher at the market open.

Underscoring the strong performance: consumer loans grew 4 percent from a year ago, and commercial banking revenue shot up 8 percent.

The report, however, wasn't without some warning signs.

A key metric of loan profitability grew at a slower pace, trading revenue fell, and the bank set aside $90 million for potential credit losses in commercial loans.

But investors were willing to overlook that.

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