JPMorgan Chase & Co.’s first-quarter results were marred by a $524 million loss tied to market fallout from Russia’s invasion of Ukraine.
JP Morgan said the loss was driven by “funding spread widening as well as credit-valuation adjustments relating to both increases in commodities exposures and markdowns of derivatives receivables from Russia-associated counterparties.”
Still, fixed-income and trading revenue both beat analysts’ estimates, bringing net income to $8.28 billion, also surpassing estimates.
JPMorgan’s fixed-income traders pulled in $5.7 billion in the first three months of the year, crushing analysts’ estimates by $1 billion.
Equity traders also beat expectations, with $3.1 billion of revenue in the quarter.
Investment-banking revenue fell to $2.1 billion, lower than the $2.3 billion analysts were expecting.
Revenue from debt and equity issuance both dropped, while advisory fees gained from a year ago.
Total loans at the end of the first quarter rose 6% from a year earlier, with commercial loans up 10% and credit-card loans 15% higher.