JPMorgan Posts $14.6B Profit as CEO Warns of Trade War Risks/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ JPMorgan Chase posted a $14.6 billion profit in Q1, beating analyst expectations on earnings and revenue. CEO Jamie Dimon praised the firm’s markets division but warned that Trump’s trade war and global instability could cloud the economic outlook. Other major banks, including Morgan Stanley and Wells Fargo, also posted strong results while signaling caution.
JPMorgan Surpasses Q1 Targets as Trade War Looms: Quick Looks
- Q1 profit rose 9% to $14.6 billion, beating analyst projections.
- Earnings per share hit $5.07, surpassing expectations of $4.63.
- Total revenue climbed to $46 billion, well above $41.9B last year.
- CEO Jamie Dimon warned of global trade uncertainty affecting outlook.
- Tariff chaos and geopolitical risks cited as major threats to stability.
- JPMorgan’s markets division revenue surged 21%, equities revenue up 48%.
- CFO Jeremy Barnum: too early to assess impact of China’s 125% tariffs.
- The bank reserved $3.3B for bad loans and repurchased $7B in stock.
- Morgan Stanley and Wells Fargo also beat expectations, but stayed cautious.
- Wells CEO: “Prepared for a slower economic environment in 2025.”
JPMorgan Posts $14.6B Profit as CEO Warns of Trade War Risks
Deep Look
JPMorgan Chase kicked off 2025 with a robust $14.6 billion in first-quarter profits, outpacing Wall Street’s expectations despite swirling concerns about global economic instability. But CEO Jamie Dimon didn’t hold back in warning that President Donald Trump’s volatile trade war, along with broader geopolitical tensions, could pose a real threat to future growth.
JPMorgan’s earnings per share rose to $5.07, compared to $4.44 in Q1 of 2024. That performance exceeded analyst estimates of $4.63 per share, according to FactSet. Revenue jumped to $46 billion, beating forecasts and significantly topping the $41.9 billion the bank posted a year ago.
“We had another strong quarter, especially in markets,” Dimon said. “But we remain cautious about the outlook given the current global trade dynamics.”
Markets Division Thrives Amid Volatility
One of the bank’s brightest spots was its markets division, which benefited from a surge in trading volume. Markets revenue rose 21%, with equities revenue up 48% year-over-year. Much of this activity occurred even before Trump’s massive “Liberation Day” tariffs took effect in early April.
Though volatility can bring short-term opportunities for traders, Dimon emphasized that banks prefer long-term stability, especially when it comes to lending and investment planning.
“Trade wars make planning difficult for businesses, and that trickles down to banks,” he added.
Tariffs and Trade War Impact
President Trump’s decision to hike tariffs to 145% on Chinese goods and 10% across most trading partners has roiled markets, with Wall Street experiencing sharp swings. These abrupt changes in policy have injected uncertainty into global commerce and financial systems.
“We really have to see how things play out,” said CFO Jeremy Barnum. “In the near term, our business in China is performing fine, and we are not seeing any impact.”
Still, the bank is preparing for potential turbulence by setting aside $3.3 billion to cover bad loans, up from $1.9 billion in the same quarter last year.
Capital Strategy and Investor Confidence
In addition to solid earnings, JPMorgan continued to return capital to shareholders. The firm repurchased $7 billion in common stock and raised its dividend by 12%, sending a strong signal of confidence to investors.
Shares of JPMorgan rose 2.4% in premarket trading, as investors responded positively to the bank’s results and capital actions.
Wall Street Peers Show Similar Trends
Morgan Stanley also posted strong results, buoyed by a similar uptick in equity trading. The investment bank reported $4.3 billion in net income and a record $17.7 billion in revenue, with shares gaining just over 1% in early trading.
Wells Fargo followed suit, reporting $4.89 billion in Q1 net income, or $1.39 per share, well above analyst forecasts of $1.23.
Wells Fargo CEO Charles Scharf noted that while his bank supports efforts to address trade imbalances, he remains cautious.
“There are certainly risks associated with such significant actions,” Scharf said. “We are prepared for a slower economic environment in 2025.”
Wells Fargo stock climbed 1.7% in premarket on the earnings beat.
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