US bank profits surge in Q1 while JPMorgan Chase warns of looming geopolitical risks

Major US banks JPMorgan Chase, Wells Fargo, and Citigroup posted strong quarterly earnings in the first quarter of the year, both in revenue and net profit, as the broader US economy continued to show resilience.

JPMorgan Chase’s first-quarter revenue rose 10% year-on-year, totaling $49.8 billion, while its net profit climbed 13% to $16.5 billion, and its earnings per share came at $5.94 versus $5.07 in the same period last year.

Despite the positive performance, JPMorgan Chase CEO Jamie Dimon said in a statement that the strong economic activity was led by increased fiscal stimulus, deregulation, capital investments led by artificial intelligence (AI), and the Fed’s asset purchases.

“At the same time, there is an increasingly complex set of risks — such as geopolitical tensions and wars, energy price volatility, trade uncertainty, large global fiscal deficits and elevated asset prices,” he said. “While we cannot predict how these risks and uncertainties will ultimately play out, they are significant and they reinforce why we prepare the Firm for a wide range of environments.”

Meanwhile, Wells Fargo posted a 6% rise year-on-year in revenue, reaching $21.45 billion, as well as a 7% increase in net profit to $5.25 billion, while its earnings per share reached $1.6.

Wells Fargo CEO Charlie Scharf attributed the momentum to the ongoing resiliency of the US economy.

While markets have been volatile, we still see continued resiliency in the underlying economy, and the financial health of the consumers and businesses we serve remains strong, though the impact of higher oil prices will likely take some time to materialize,” he said. “We will continue to monitor trends and respond accordingly, and we are well-positioned to support our customers across a range of economic scenarios.”

As for Citigroup, the bank posted the most dramatic growth fueled by market volatility and a rise in investment banking fees, as its net income surged by a whopping 42% to $5.8 billion in the first quarter of the year, while its first-quarter revenue rose 14% to $21.6 billion, and its earnings per share rose from $1.96 to $3.06.

Citigroup CEO Jane Fraser attributed the growth to the bank’s ongoing strategic overhaul as it entered the final phase of its divestitures.

*Writing by Emir Yildirim in Istanbul