(Reuters) – JPMorgan Chase & Co’s profit jumped in the first quarter as higher interest rates boosted its lending business, helping the biggest U.S. bank weather March’s banking crisis.
The bank’s profit rose 52% to $12.62 billion (€11.4 billion), or $4.10 per share, in the three months to March 31.
The title of JPMorgan took 5% in pre-market.
JPMorgan’s strong results follow the high-profile shutdown of three U.S. banks last month in the worst banking crisis since the 2008 global financial crisis.
Regulators took control of Silicon Valley Bank (SVB) and Signature Bank when depositors withdrew their funds, marking the second and third biggest bankruptcies in US history.
JPMorgan made provisions to the tune of $2.3 billion, an increase of 56% over last year.
Revenue from the lender’s consumer and community banking unit rose 80% to $5.2 billion.
However, its investment banking business remained a sore spot. Its revenues fell 24%, due to the sluggishness of the market for mergers and acquisitions and share sales. Trading revenue fell 12%, fixed income trading revenue was flat.
Overall revenue increased 25% to $38.3 billion.
(Reporting Niket Nishant in Bangalore and Nupur Anand in New York; Nathan Vifflin, editing by Kate Entringer)
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