JPMorgan beats Wall Street estimates, lender’s shares jump 6%

The lender’s shares jumped 6% as its performance underscored how big banks withstood the crisis better than regional banks.

The US consumer and the economy remain robust but the banking crisis could turn lenders more conservative and impact consumer spending, said Chief Executive Jamie Dimon.

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“The US economy continues to be on generally healthy footings — consumers are still spending and have strong balance sheets, and businesses are in good shape,” Dimon said.

“However, the storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks,” he added.

Earlier in March, Silicon Valley Bank and Signature Bank failed post depositors yanked their funds, marking the second and third largest collapses in US history.

In the three months ended 31 March, JPMorgan set aside loan loss provisions of $2.3 billion, up 56% from last year. It reported a 52% increase in profit to $12.62 billion, or $4.10 per share.

According to Refinitiv IBES data, excluding one-time costs, the bank earned $4.32 per share, ahead of analysts’ average expectation of $3.41 per share.

“JPM is one of those household names in a sector that we were the most concerned about reporting better than expected earnings and that is certainly putting a bid in the stock and a bid in the market,” said Art Hogan, chief market strategist at B Riley Wealth in Boston.

With agency inputs.