JPMorgan’s record trading profits outshine tariff concerns

Source: X/@jpmorgan.

However, chief executive officer Jamie Dimon struck a cautious tone regarding the broader economic outlook, as corporate America continues to grapple with the impact of US President Donald Trump's tariffs, which have heightened inflation concerns and raised the specter of a potential recession.

The administration introduced steep reciprocal tariffs on numerous countries last week but reversed course on many of them by Wednesday, 9 April 2025.

Since the initial announcement, JPMorgan’s shares have fallen by approximately 8%, reaching a seven-month low earlier this week.

The bank raised its credit loss provisions to $3.3bn, up from $1.9bn a year earlier, anticipating potential strain on borrowers. Elevated import tariffs could reignite inflation and slow economic growth, making it harder for consumers and businesses to meet their debt obligations.

JPMorgan reported first-quarter earnings of $14.6bn, or $5.07 per share, up from $13.4bn last year. Adjusted earnings of $4.91 per share beat estimates of $4.61.

Market volatility boosted trading revenue by 21% to $9.7bn, with equities trading hitting a record $3.8bn. Investment banking fees rose 12% to $2.2bn, driven by stronger debt underwriting and advisory activity.

US consumer confidence fell to a four-year low in March amid recession and inflation fears linked to tariffs.

PMorgan’s Dimon warned trade tensions could cause lasting inflation and fiscal strain. Despite this, net interest income rose 1% to $23.4bn, with full-year guidance increased.