The boss of JP Morgan, Jamie Dimon, has said “storm clouds” threatening the banking sector have grown since last month’s short-lived crisis but the lender is prepared for further turmoil to come after first-quarter profits rose by 52%.
Wall Street’s largest bank reported the jump in net income – a measure of profits – to $12.6bn (£10bn) over the first three months of the year, up from $8.3bn over the same period in 2022.
That was despite a 56% rise in the money put aside for potential defaults by its customers to $2.3bn.
The bank’s profits benefited from the same rise in US and global interest rates that contributed to last month’s short-lived banking crisis, which started with the surprise collapse of Silicon Valley Bank and later led to theemergency rescue of Switzerland’s second largest lender, Credit Suisse.
The steady rise in interest rates pushed JP Morgan’s net interest income – which accounts for the difference in the amount paid out to savers compared with the amount charged for loans and mortgage – up 49%, and led to record revenues of $38.3bn in the first quarter.
Dimon said the first-quarter results were proof that years of investment and careful management of its risks had paid off, allowing the lender to “act as a pillar of strength in the banking system and stand by our clients during a period of heightened volatility and uncertainty”.
But while the US economy appeared to be on “generally healthy footings”, the JP Morgan chief executive said there was a risk of further disruption ahead.
“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,” Dimon said in a statement released alongside the bank’s earnings report.
He said the
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