JPMorgan reported its first-quarter earnings Wednesday, beating estimates, partly as a result of the release of $5.2 billion in funds it had set aside in anticipation of loan losses due to the pandemic.
The bank reported profits of $14.3 billion, or $4.50 a share, including a $1.28 per share benefit from the reserve release, according to the earnings release. Refinitiv analysts had projected $3.10 per share, according to CNBC.
“JPMorgan Chase earned $14.3 billion in net income reflecting strong underlying performance across our businesses, partially driven by a rapidly improving economy,” Jamie Dimon, chairman and CEO, said in the release. “These results include a benefit from credit reserve releases of $5.2 billion that we do not consider core or recurring profits. We believe our credit reserves of $26 billion are appropriate and prudent, all things considered.”
Firmwide, the company reported revenue of $32.3 billion, up 14%, according to the earnings release.
“With all of the stimulus spending, potential infrastructure spending, continued Quantitative Easing, strong consumer and business balance sheets and euphoria around the potential end of the pandemic, we believe that the economy has the potential to have extremely robust, multi-year growth,” Dimon added. “This growth can benefit all Americans, particularly those who suffered the most during this pandemic. If all of the government programs are spent wisely and efficiently, focusing on actual outcomes, the benefits will be more widely shared, economic growth will be more sustainable and future problems, like inflation and too much debt, will be reduced.”
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