Concerns about the impact of artificial intelligence on software companies and the uncertain outcome of the Iran war affected global financial markets in the first quarter.

Net income was $16.5 billion, up 13 per cent while net revenue rose by 10 per cent to $50.5 billion. Net interest income climbed by 9 per cent to $25.5 billion while noninterest revenue was $25.1 billion, up 11 per cent and net interest income excluding markets was $23.3 billion, up 3 per cent, driven by higher deposit balances, as well as higher revolving balances in card services, predominantly offset by the impact of lower rates.

In asset and wealth management, net income was $1.8 billion, up 12 per cent while net revenue rose by 11 per cent to $6.4 billion, predominantly driven by growth in management fees on strong net inflows and higher average market levels, as well as higher brokerage activity. Noninterest expense was $4.2 billion, up 12 per cent, largely driven by higher compensation, due to higher revenue-related compensation and continued growth in private banking advisor teams, as well as higher distribution fees. Assets under management were $4.8 trillion, up 16 per cent, and client assets rose by 18 per cent to $7.1 trillion, driven by higher market levels and continued net inflows.

“The firm delivered strong results in the first quarter, reporting net income of $16.5 billion,” Jamie Dimon, chairman and CEO, said. “Performance was strong across our businesses. In AWM, revenue increased 11 per cent, and flows remained healthy with $54 billion of long-term AUM net inflows.”

"The US economy remained resilient in the quarter, with consumers still earning and spending and businesses still healthy. Several tailwinds are supporting this resiliency, including increased fiscal stimulus, the benefits of deregulation, AI-driven capital investment and the Fed's asset purchases. At the same time, there is an increasingly complex set of risks – such as geopolitical tensions and wars, energy price volatility, trade uncertainty, large global fiscal deficits and elevated asset prices,” he continued. “While we cannot predict how these risks and uncertainties will ultimately play out, they are significant and they reinforce why we prepare the firm for a wide range of environments.”

Meanwhile, Axel Rudolph, chief technical analyst at IG, believes that JP Morgan’s results underline the strength of the US banking sector, with solid gains in both consumer and investment banking helping to drive another rise in profits. “The resilience of the US consumer remains the cornerstone here, with spending and earnings holding up well despite a more uncertain backdrop. However, Jamie Dimon’s caution is hard to ignore,” Rudolph said. “The economy may be holding firm for now, but the growing list of geopolitical and macro risks means the outlook is far from straightforward. Markets have been willing to look through these concerns in recent months, but if energy prices remain high, that resilience will be tested. For now, JP Morgan continues to set the pace, but the environment is becoming more challenging.”