mardi 14 avril 2015
Trading rebound helps JPMorgan beat the Street
Posted on 09:01 by nice news
JPMorgan Chase chieftain Jamie Dimon has silenced the bank’s critics — at least, for now.
The nation’s biggest bank by assets beat the Street in the first quarter, thanks largely to an uptick in trading.
Shares rose 2 percent to $63.32 in early trading.
The bank made $5.9 billion, or $1.45 a share, last quarter. That topped analysts’ average estimates of $1.40 a share, according to Nasdaq.
The stronger-than-expected results could help quell growing calls to break up the bank. Some analysts and investors believe the bank is worth more split up into separate companies.
While all of the bank’s businesses showed growth, trading fueled results in the first three months.
Higher volatility pushed trading revenue to $3.66 billion, up from $3.32 billion, even though the Federal Reserve vowed to keep interest rates low, making it more difficult to profit off trading bonds.
“Recent sentiment is that the Fed will act later rather than sooner this year,” JMPorgan CFO Marianne Lake said in a call with analysts. “As a result, while we are still seeing good client flow, and volatility does remain elevated, it is still somewhat lower coming into the second quarter.”
Wall Street firms suffered through a trading slump last year when the markets remained relatively calm. In the absence of revenue growth, the big banks resorted to cost cuts to boost profit.
The nation’s biggest bank by assets beat the Street in the first quarter, thanks largely to an uptick in trading.
Shares rose 2 percent to $63.32 in early trading.
The bank made $5.9 billion, or $1.45 a share, last quarter. That topped analysts’ average estimates of $1.40 a share, according to Nasdaq.
The stronger-than-expected results could help quell growing calls to break up the bank. Some analysts and investors believe the bank is worth more split up into separate companies.
While all of the bank’s businesses showed growth, trading fueled results in the first three months.
Higher volatility pushed trading revenue to $3.66 billion, up from $3.32 billion, even though the Federal Reserve vowed to keep interest rates low, making it more difficult to profit off trading bonds.
“Recent sentiment is that the Fed will act later rather than sooner this year,” JMPorgan CFO Marianne Lake said in a call with analysts. “As a result, while we are still seeing good client flow, and volatility does remain elevated, it is still somewhat lower coming into the second quarter.”
Wall Street firms suffered through a trading slump last year when the markets remained relatively calm. In the absence of revenue growth, the big banks resorted to cost cuts to boost profit.
Trading rebound helps JPMorgan beat the Street
Categories: Trading rebound helps JPMorgan beat the Street
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