JPMorgan Q1 2025 Earnings Beat Wall Street Expectations: CEO Jamie Dimon Cautions ‘Economy Is Facing Considerable Turbulence’

JPMorgan Chase & Co. (JPM) shares rose over 1% in Friday’s pre-market trade after the lender commenced 2025 on a strong note, with its first-quarter revenue and earnings beating Wall Street expectations.

The bank’s Q1 revenue rose 8% year-over-year (YoY) to $45.31 billion, surpassing a Wall Street estimate of $44.10 billion, per FinChat data. Earnings per share (EPS) came in at $5.07 versus a Street estimate of $4.65. Net income rose 9% YoY to $14.64 billion during the quarter.

However, JPMorgan’s provisions for credit losses jumped 75% YoY to $3.3 billion. Of this, net charge-offs rose $376 million to $2.3 billion, driven by Card Services.

The bank said that the net reserve build of $973 million included $549 million in the Wholesale division and $441 million in the Consumer division and was primarily driven by changes in the weighted-average macroeconomic outlook.

Net interest income (NII), the difference between interest earned and expended, rose 1% to $23.4 billion during the quarter. NII excluding Markets was $22.6 billion, down 2%, driven by lower rates, deposit margin compression, and lower deposit balances in Consumer and Community Banking (CCB).

CEO Jamie Dimon acknowledged that the economy is facing considerable turbulence (including geopolitics).

He highlighted potential positives such as tax reform and deregulation, while his list of potential negatives includes tariffs, trade wars, ongoing sticky inflation, high fiscal deficits, and still rather high asset prices and volatility.

“As always, we hope for the best but prepare the firm for a wide range of scenarios,” he said.

Dimon also said it is prudent to maintain excess capital and ample liquidity in the current environment. “…our CET1 ratio remained very strong at 15.4%, and we have an extraordinary amount of liquidity, with $1.5 trillion of cash and marketable securities.”

JPMorgan reported a 2% rise in Investment Banking revenue to $2.3 billion. Investment Banking fees rose 12% to $2.2 billion, driven by higher debt underwriting and advisory fees, partially offset by lower equity underwriting fees.

Markets & Securities Services revenue increased 19% to $10.9 billion.

The bank’s Assets and Wealth Management division saw a 12% rise in revenue to $5.7 billion driven by growth in management fees on strong net inflows and higher average market levels, as well as higher brokerage activity and higher deposit balances.

Assets under management stood at $4.1 trillion, while client assets were at $6.0 trillion, each rising 15%, driven by continued net inflows and higher market levels.

JPM shares have lost over 5% in 2025 but have gained over 16% in the past 12 months.

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