JPMorgan Chase on Friday posted revenue and income that topped Wall Road estimates as credit score prices and buying and selling income got here in higher than anticipated.

This is what the company reported in contrast with estimates from analysts surveyed by LSEG, previously often called Refinitiv:

• Earnings: $4.44 per share, vs. $4.11 anticipated
• Income: $42.55 billion, vs. $41.85 billion anticipated

The financial institution stated first-quarter revenue rose 6% to $13.42 billion, or $4.44 per share, from a yr earlier, boosted by its takeover of First Republic in the course of the regional banking disaster final yr. Per-share earnings would’ve been 19 cents greater excluding a $725 million enhance to an FDIC price protecting prices from final yr’s financial institution failures.

Income climbed 8% to $42.55 billion because the financial institution generated extra curiosity earnings because of greater charges and bigger mortgage balances.

However in guidance for 2024, the financial institution stated it anticipated web curiosity earnings of round $90 billion, which is basically unchanged from its earlier forecast.

That appeared to disappoint buyers, a few of whom anticipated JPMorgan to raise its guidance by $2 billion to $3 billion for the yr. Shares of JPMorgan fell greater than 6% Friday.

Whereas the NII steerage “strikes us as ultra-conservative (and now leaves room to be revised upward afterward), we suspect the unchanged outlook will disappoint buyers,” Piper Sandler analyst Scott Siefers stated Friday in a word.

JPMorgan posted a $1.88 billion provision for credit score losses within the quarter, far beneath the $2.7 billion anticipated by analysts. The availability was 17% smaller than a yr in the past, because the agency launched some reserves for mortgage losses, relatively than constructing them because it did a yr earlier.

Whereas buying and selling income general was down 5% from a yr earlier, fastened earnings and equities outcomes topped analysts’ expectations by greater than $100 million every, coming in at $5.3 billion and $2.7 billion, respectively.

JPMorgan CEO Jamie Dimon referred to as his firm’s outcomes “sturdy” throughout shopper and institutional areas, helped by a still-buoyant U.S. financial system, although he struck a note of caution about the future.

“Many financial indicators proceed to be favorable,” Dimon stated. “Nevertheless, trying forward, we stay alert to a lot of important unsure forces” together with abroad battle and inflationary pressures.

Although the largest U.S. financial institution by property has navigated the speed setting effectively for the reason that Federal Reserve started elevating charges two years in the past, smaller friends have seen their earnings squeezed.

The business has been compelled to pay up for deposits as clients shift money into higher-yielding devices, squeezing margins. Concern can be mounting over rising losses from business loans, particularly on workplace buildings and multifamily dwellings, and better defaults on bank cards.

When requested about business actual property throughout a media name Friday, CFO Jeremy Barnum stated that whereas JPMorgan constructed its reserves final yr for the asset class, he noticed no indicators of enchancment.

“Particularly in workplace, the story is well-known, and so far as we are able to see, it is not getting higher,” Barnum stated. “There’s no mild on the finish of the tunnel there from what we are able to see.”

Massive banks are anticipated to outperform smaller ones, which are likely to have bigger exposures to business actual property, this quarter.

Wells Fargo and Citigroup additionally reported quarterly outcomes Friday, whereas Goldman Sachs, Bank of America and Morgan Stanley report subsequent week.