JPMorgan Chase Reports 52% Jump in Q1 2023 Profit Thanks to Higher Interest Rates

JPMorgan Chase, the largest bank in the United States by assets, posted a 52% jump in profit in the first quarter of 2023, boosted by higher interest rates, which allowed the bank to charge customers more for loans.[0] The bank reported revenues of $38.3bn, up 25% from the previous year, which helped it pull in $12.6bn in profit.[1] Although total deposits fell by 7% from the same period last year to $2.38tn, the bank said inflows picked up in particular after smaller competitors saw depositors pull cash en masse.[1] Deposits rose by $37bn from December to $2.38tn, indicating that people and businesses sought a safe haven in the banking crisis by moving their money to megabanks such as JPMorgan. [2]Shares of JPMorgan were up more than 6% in early trading on Friday. 


JPMorgan’s better-than-expected results were reassuring news for investors after recent banking sector turmoil sparked contagion fears.[3] JPMorgan CEO Jamie Dimon, who has taken a leading role in bailing out smaller lenders, said the banking crisis was distinct, but that financial conditions were likely to tighten as lenders, including JPMorgan, become more conservative.[1] Dimon added that although the US economy remained on “generally healthy footing”, the storm clouds that the bank had been monitoring for the past year were still on the horizon. 


The bank’s profit growth came from higher interest rates, with net interest income rising 49% to $20.8bn in the quarter, up from last year.[1] JPMorgan’s CFO, Jeremy Barnum, said most of the new deposits flowed into new business and company bank accounts, reversing the flow of deposits exiting the bank for several quarters.[4] While JPMorgan hopes the clouds will clear, it is “prepared for a broad range of outcomes”, according to Dimon. 


However, JPMorgan warned again of a potential economic downturn, raising its reserves for anticipated loan losses by $1.1bn.[6] Although the US economy remains on generally healthy footing, the banking industry turmoil adds to the risks, Dimon said. JPMorgan’s results beat those of its competitors, including Wells Fargo, which posted a profit of nearly $5bn in the first quarter, up 32% from a year earlier, and Citigroup, which also reported higher-than-expected earnings.

0. “JP Morgan Soars after Stellar Q1 Results” TipRanks, 14 Apr. 2023,

1. “Biggest US Banks Report Bumper Profits Amid Industry Turmoil” Moneycontrol, 14 Apr. 2023,

2. “JPMorgan Posts Record Revenue, Rising Earnings in First Quarter” The Wall Street Journal, 14 Apr. 2023,

3. “JP Morgan joins in on the earnings beat” ForexLive, 14 Apr. 2023,

4. “JPMorgan Chase posts record revenue on higher interest rates; shares jump 7%” CNBC, 14 Apr. 2023,

5. “Large US banks report higher profits despite recent industry turmoil” CNA, 14 Apr. 2023,

6. “JPMorgan: Consumers Continue to Spend, but ‘Storm Clouds’ on Horizon”, 14 Apr. 2023,