“JPMorgan Chase & Co. (JPM) said first- quarter profit rose 33 percent to an all-time high, beating analysts’ estimates as improving consumer credit quality allowed the bank to cut loan-loss reserves by $1.2 billion.
First-quarter net income climbed to $6.53 billion, or $1.59 a share, from $4.92 billion, or $1.19, in the same period a year earlier, the New York-based company said today in a statement. Twenty-eight analysts surveyed by Bloomberg estimated earnings per share of $1.39 adjusted for a one-time accounting item.
Earnings were buoyed by a drop in late payments as net charge-offs in the consumer bank fell 29 percent to $1.7 billion, allowing the firm to release loan-loss reserves into earnings. While mortgage volume jumped 37 percent, mortgage- banking net income dropped 31 percent to $673 million as record- lowinterest rates squeezed profits. Margins on lending declined to 2.37 percent from 2.61 percent a year earlier.
“We are seeing positive signs that the economy is healthy and getting stronger,” Chief Executive Officer Jamie Dimon, 57, said in the statement. “Housing prices continued to improve and new home purchases are also starting to come back.”
About $5.68 billion of JPMorgan’s record $21.3 billion in 2012 profit came from reserve releases as fewer consumers defaulted on their payments.
