Alexander Saeedy

JPMorgan Chase's first-quarter earnings rose 9% but the bank raised concerns over a slowing global economy that could cause loan losses and paralysis in the capital markets.

The bank reported profit of $14.64 billion compared with $13.42 billion a year ago. Earnings per share were $5.07, beating analyst expectations of $4.63.

Revenue rose 8% to $45.31 billion.

"The economy is facing considerable turbulence," JPMorgan CEO Jamie Dimon said in a press release. "We continue to believe it is prudent to maintain excess capital and ample liquidity in this environment."

The bank's economists and Dimon have said that they expect the U.S. economy will head into recession later this year, largely due to the impact of tariffs on China and the risk that President Trump will impose more later.

Even accounting for the pause Trump announced Wednesday, the bank's view is that "a contraction in real activity later this year is more likely than not," JPMorgan's chief U.S. economist Michael Feroli said in a note on Wednesday to clients.

Dimon raised the alarm about corporate confidence on Wednesday during an appearance on Fox Business, which made it to the ears of Trump before he decided to call timeout on his tariff plan.

The wild gyrations in markets already seen in the first quarter helped the bank bring in record revenue in its stock-trading business as clients looked to exit or buy new investments. Revenue from equities was up 48% year over year, hitting $3.8 billion.

However, the more recent volatility is expected to slam into investment banking, with uncertainty around Trump's economic policies weighing on dealmaking. Investment banking fees were up 12% to $2.2 billion, but Dimon warned clients have become more cautious.

An economic slowdown would likely pass through to JPMorgan's core banking customers and discourage them from spending. The bank set aside $475 million more for losses in the Chase business during the first quarter, citing changes in the economic outlook. That dragged down the consumer bank's profit.

Shares of the bank had fallen 5% this year, outperforming rivals, which are down double-digits. They were up about 3% in premarket trading on Friday.

Write to Alexander Saeedy at alexander.saeedy@wsj.com

(END) Dow Jones Newswires

April 11, 2025 07:20 ET (11:20 GMT)

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