JPMorgan Chase & Co (JPM.N), the biggest U.S. bank by assets, reported a 35 percent surge in quarterly profit on Friday, helped by higher interest rates for loans and lower taxes, Reuters reports.
The bank's net income rose to $8.71 billion, or $2.37 per share, in the first quarter ended March 31 from $6.45 billion, or $1.65 per share, a year earlier.
Analysts had estimated earnings of $2.28 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.
Income tax expense was down 8.6 percent at $2.56 billion as the U.S. corporate tax rate fell.
Net interest income rose 9 percent to $13.5 billion, driven by higher interest rates and increased lending.
“2018 is off to a good start with our businesses performing well across the board, driving strong top-line growth and building on the momentum from last year,” Chief Executive Officer Jamie Dimon said in a statement.
Net revenue rose 10.3 percent to $28.52 billion, beating the average analyst estimate of $27.68 billion.
Many of JPMorgan’s business lines have delivered higher profits in the past year as the economy grows, capital markets flourish and higher interest rates lift lending revenue more than the bank’s cost of money.
Return on tangible common equity, a performance measure, was 19 percent, compared with 13 percent a year earlier. JPMorgan in February raised its return target for three years out to 17 percent, largely because of lower tax rates.