JPMorgan hits record quarterly profit, helped by lower taxes

NEW YORK — Wall Street giant JPMorgan Chase & Co. recorded the highest quarterly profit in its history Friday, as the company benefited greatly from the new tax law passed late last year.

JPMorgan Chase, the nation’s largest bank by assets and deposits, had a profit of $8.71 billion in the first quarter, a jump of 35 per cent from a profit of $6.45 billion in the same period a year earlier. On a per-share basis, JPMorgan earned $2.37 a share, up from $1.65 per share, beating analysts’ forecasts.

JPMorgan’s results were driven by two factors: higher interest rates, which have allowed banks like JPMorgan to charge more for customers to borrow, and a much lower corporate tax rate.

While JPMorgan’s pretax income rose by $2 billion in the quarter, the company said it paid $240 million less in taxes compared to a year earlier.

“The global economy continues to do well, and we remain optimistic about the positive impact of tax reform in the U.S. as business sentiment remains upbeat, and consumers benefit from job and wage growth,” said JPMorgan Chase CEO Jamie Dimon in a statement.

The Federal Reserve has been steadily raising interest rates for more than two years now, and banks have started benefiting from this change. Net interest income at JPMorgan was $13.3 billion, up 10 per cent from a year earlier.

JPMorgan’s investment bank also had a solid quarter, helped by much more volatile and active markets last quarter. Net income in the investment bank was $3.97 billion, up from $3.24 billion a year earlier.

JPMorgan’s quarterly revenue was $28.52 billion, up from $25.85 billion.