JPMorgan posted first-quarter profit that beat Wall Street estimates as the firm slashed bankers’ pay, and trading revenue declined less than most analysts predicted. The shares rose in early trading Wednesday.
Bloomberg News reports that net income fell 6.7% to $5.52bn from $5.91bn, or $1.45, a year earlier, the company said in a statement. On an adjusted basis, per-share earnings were $1.41, beating the $1.25 average estimate of 29 analysts surveyed by Bloomberg.
Wall Street pays keen attention to JPMorgan’s report, as it’s the first to show how much money the biggest U.S. banks are making from trading and advising on deals. Firms already warned that market turbulence and global growth concerns deterred clients from trading or issuing securities in the first quarter, typically the strongest of the year. Analysts including Jason Goldberg of Barclays have predicted the industry’s worst start to the year since the financial crisis.
“While challenging markets impacted the industry, we maintained our leadership positions and market share,” Chief Executive Officer Jamie Dimon said in the statement. “Even in a challenging environment, clients continue to turn to us in the global markets.”
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