{"id":2999,"date":"2023-04-15T14:30:00","date_gmt":"2023-04-15T19:30:00","guid":{"rendered":"https:\/\/embarrdowns.com\/jpmorgan-chase-reports-52-jump-in-q1-2023-profit-thanks-to-higher-interest-rates\/"},"modified":"2023-04-14T16:02:46","modified_gmt":"2023-04-14T21:02:46","slug":"jpmorgan-chase-reports-52-jump-in-q1-2023-profit-thanks-to-higher-interest-rates","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/jpmorgan-chase-reports-52-jump-in-q1-2023-profit-thanks-to-higher-interest-rates\/","title":{"rendered":"JPMorgan Chase Reports 52% Jump in Q1 2023 Profit Thanks to Higher Interest Rates"},"content":{"rendered":"

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]<\/a><\/sup> The bank reported revenues of $38.3bn, up 25% from the previous year, which helped it pull in $12.6bn in profit.[1]<\/a><\/sup> 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]<\/a><\/sup> 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.\u00a0[2]<\/a><\/sup>Shares of JPMorgan were up more than 6% in early trading on Friday.\u00a0<\/p>\n

\u00a0[3]<\/a><\/sup><\/p>\n

JPMorgan’s\u00a0better-than-expected results were\u00a0reassuring news for investors after recent banking sector turmoil sparked contagion fears.[3]<\/a><\/sup> 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]<\/a><\/sup> 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.\u00a0<\/p>\n

\u00a0<\/p>\n

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]<\/a><\/sup> 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]<\/a><\/sup> While JPMorgan hopes the clouds will clear, it is “prepared for a broad range of outcomes”, according to Dimon.\u00a0<\/p>\n

\u00a0[5]<\/a><\/sup><\/p>\n

However, JPMorgan warned again of a potential economic downturn, raising its reserves for anticipated loan losses by $1.1bn.[6]<\/a><\/sup> Although the US economy remains on generally healthy footing, the banking industry turmoil adds to the risks, Dimon said.\u00a0JPMorgan’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.<\/p>\n

0. <\/span>“JP Morgan Soars after Stellar Q1 Results” TipRanks, 14 Apr. 2023, https:\/\/www.tipranks.com\/news\/jp-morgan-surges-after-q1-results-top-estimates<\/a><\/a><\/p>\n

1. <\/span>“Biggest US Banks Report Bumper Profits Amid Industry Turmoil” Moneycontrol, 14 Apr. 2023, https:\/\/www.moneycontrol.com\/news\/business\/economy\/biggest-us-banks-report-bumper-profits-amid-industry-turmoil-10415981.html<\/a><\/a><\/p>\n

2. <\/span>“JPMorgan Posts Record Revenue, Rising Earnings in First Quarter” The Wall Street Journal, 14 Apr. 2023, https:\/\/www.wsj.com\/livecoverage\/stock-market-news-today-04-14-2023-bank-earnings\/card\/jpmorgan-posts-record-revenue-in-first-quarter-EcziN6GYqr0WvmNGrzD9<\/a><\/a><\/p>\n

3. <\/span>“JP Morgan joins in on the earnings beat” ForexLive, 14 Apr. 2023, https:\/\/www.forexlive.com\/news\/jp-morgan-joins-in-on-the-earnings-beat-20230414\/<\/a><\/a><\/p>\n

4. <\/span>“JPMorgan Chase posts record revenue on higher interest rates; shares jump 7%” CNBC, 14 Apr. 2023, https:\/\/www.cnbc.com\/2023\/04\/14\/jpmorgan-chase-jpm-earnings-1q-2023.html<\/a><\/a><\/p>\n

5. <\/span>“Large US banks report higher profits despite recent industry turmoil” CNA, 14 Apr. 2023, https:\/\/www.channelnewsasia.com\/business\/large-us-banks-report-higher-profits-despite-recent-industry-turmoil-jpmorgan-chase-citigroup-3418621<\/a><\/a><\/p>\n

6. <\/span>“JPMorgan: Consumers Continue to Spend, but \u2018Storm Clouds\u2019 on Horizon” PYMNTS.com, 14 Apr. 2023, https:\/\/www.pymnts.com\/earnings\/2023\/jpmorgan-consumers-continue-to-spend-but-storm-clouds-on-horizon\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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]<\/a><\/sup> The bank reported revenues of $38.3bn, up 25% from the previous year, which helped it pull in $12.6bn in profit.[1]<\/a><\/sup> 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]<\/a><\/sup> 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.\u00a0[2]<\/a><\/sup>Shares of JPMorgan were up more than 6% in early trading on Friday.\u00a0<\/p>\n

\u00a0[3]<\/a><\/sup><\/p>\n

JPMorgan’s\u00a0better-than-expected results were\u00a0reassuring news for investors after recent banking sector turmoil sparked contagion fears.[3]<\/a><\/sup> 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]<\/a><\/sup> 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.\u00a0<\/p>\n

\u00a0<\/p>\n

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]<\/a><\/sup> 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]<\/a><\/sup> While JPMorgan hopes the clouds will clear, it is “prepared for a broad range of outcomes”, according to Dimon.\u00a0<\/p>\n

\u00a0[5]<\/a><\/sup><\/p>\n

However, JPMorgan warned again of a potential economic downturn, raising its reserves for anticipated loan losses by $1.1bn.[6]<\/a><\/sup> Although the US economy remains on generally healthy footing, the banking industry turmoil adds to the risks, Dimon said.\u00a0JPMorgan’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.<\/p>\n

0. <\/span>“JP Morgan Soars after Stellar Q1 Results” TipRanks, 14 Apr. 2023, https:\/\/www.tipranks.com\/news\/jp-morgan-surges-after-q1-results-top-estimates<\/a><\/a><\/p>\n

1. <\/span>“Biggest US Banks Report Bumper Profits Amid Industry Turmoil” Moneycontrol, 14 Apr. 2023, https:\/\/www.moneycontrol.com\/news\/business\/economy\/biggest-us-banks-report-bumper-profits-amid-industry-turmoil-10415981.html<\/a><\/a><\/p>\n

2. <\/span>“JPMorgan Posts Record Revenue, Rising Earnings in First Quarter” The Wall Street Journal, 14 Apr. 2023, https:\/\/www.wsj.com\/livecoverage\/stock-market-news-today-04-14-2023-bank-earnings\/card\/jpmorgan-posts-record-revenue-in-first-quarter-EcziN6GYqr0WvmNGrzD9<\/a><\/a><\/p>\n

3. <\/span>“JP Morgan joins in on the earnings beat” ForexLive, 14 Apr. 2023, https:\/\/www.forexlive.com\/news\/jp-morgan-joins-in-on-the-earnings-beat-20230414\/<\/a><\/a><\/p>\n

4. <\/span>“JPMorgan Chase posts record revenue on higher interest rates; shares jump 7%” CNBC, 14 Apr. 2023, https:\/\/www.cnbc.com\/2023\/04\/14\/jpmorgan-chase-jpm-earnings-1q-2023.html<\/a><\/a><\/p>\n

5. <\/span>“Large US banks report higher profits despite recent industry turmoil” CNA, 14 Apr. 2023, https:\/\/www.channelnewsasia.com\/business\/large-us-banks-report-higher-profits-despite-recent-industry-turmoil-jpmorgan-chase-citigroup-3418621<\/a><\/a><\/p>\n

6. <\/span>“JPMorgan: Consumers Continue to Spend, but \u2018Storm Clouds\u2019 on Horizon” PYMNTS.com, 14 Apr. 2023, https:\/\/www.pymnts.com\/earnings\/2023\/jpmorgan-consumers-continue-to-spend-but-storm-clouds-on-horizon\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2998,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2999"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2999"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2999\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2998"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}