JPMorgan’s net income grew by 9% to $14.6 billion in the first quarter, surpassing Wall Street’s profit and revenue expectations. However, CEO Jamie Dimon cautioned about the economic uncertainties ahead, citing ongoing trade tensions, particularly due to President Donald Trump’s trade war and other geopolitical challenges.
Dimon noted that a strong performance from the bank’s markets division helped drive the solid quarter. Despite this, he warned that trade disputes and global economic instability could impact both the bank and the broader economy. Earnings per share climbed to $5.07, up from $4.44 a year ago, exceeding analysts’ expectations of $4.63 per share. JPMorgan’s total managed revenue reached $46 billion, up from $41.9 billion a year earlier, surpassing the $44 billion expected by Wall Street.
Trump’s fluctuating tariff increases, particularly the 10% rise for most U.S. trading partners and 145% for China, have caused significant market volatility and created uncertainty about the global economic outlook. This volatility is typically unfavorable for banks, which rely on stability and healthy borrowing activity from consumers and businesses.
In the first quarter of 2025, JPMorgan’s trading division benefited from this market instability, with markets revenue rising by 21%, and equities revenue jumping by 48% compared to the previous year. Revenue from consumer and community banking increased by 4%, reaching $18.3 billion.
Regarding China, which had escalated its tariffs on U.S. imports to 125%, JPMorgan executives stated that it was too early to make long-term projections on the impact of the ongoing trade conflict. CFO Jeremy Barnum said, “We really have to see how things play out,” adding that the business was performing well in the short term without visible negative effects.
JPMorgan also set aside $3.3 billion for potential bad loans, an increase from the previous year’s $1.9 billion. Additionally, the bank repurchased $7 billion worth of stock and raised its dividend by 12%.
In response, JPMorgan’s stock rose by 2%, while broader market indexes experienced minor fluctuations and avoided the large swings seen in recent weeks.
Similarly, Morgan Stanley also exceeded Wall Street’s first-quarter projections, with net income reaching $4.3 billion and revenue hitting a record $17.7 billion, driven by strong equities trading. However, its shares declined by 1.6%.
Wells Fargo also reported its first-quarter earnings, posting net income of $4.89 billion, or $1.39 per share, surpassing analysts’ predictions of $1.23 per share. CEO Charles Scharf expressed support for the administration’s efforts to address unfair trade practices but acknowledged the risks of such actions. He added that the bank is preparing for a slower economic environment in 2025. Despite the positive earnings report, Wells Fargo’s shares dropped by 4%.
