JP Morgan profits fall in Q1 despite revenue rise
JP Morgan has reported an increase in revenues for the first three months of the year, although the bank saw a slight fall in profits over the quarter.
Revenues for January to the end of March hit $27.4 billion (£17.2 billion), up 24% from the previous quarter and 6% above the same period in 2011.
The group, which is the first major US bank to report its first-quarter results, says the revenue increase was driven by strong performance in its investment bank as well as a rise in mortgage applications.
However, JP Morgan reported net income of $5.4 billion for the three-month period, which is a 4% fall on the $5.6 billion seen one year before.
Jamie Dimon, chairman and chief executive of the bank, says: “While several significant items affected our results, overall, the firm’s performance in the first quarter was solid.”
In the bank’s asset management arm, assets under supervision reached a record $2 trillion, up 6% from one year before, while assets under management rose 4% to $1.4 trillion.
“Both increases were due to net inflows to long-term products and the impact of higher market levels,” the financial results say.
Despite the rises, net income from asset management dropped 17% over the year to $386m on the back of lower net revenue and higher non-interest expenses.
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