New York (AFP) – JPMorgan Chase reported a dip in first-quarter earnings Wednesday as revenues in key trading categories fell and it set aside additional reserves for loans in the slumping energy sector.
Net income for the first quarter was $5.5 billion, down 6.7 percent from the year-ago period.
Revenues dipped 3.0 percent to $24.1 billion.
Earnings from corporate and investment banking retreated on lower fees in some key investment banking categories and lower revenue from fixed income trading and other categories. Revenues in markets and investor services dropped 13 percent to $5.7 billion.
Consumer and community banking earnings rose on higher deposit balances and increases in credit card and auto lending revenues.
JPMorgan lifted its reserves set aside for bad loans by $713 million due to downgrades of $529 million in oil and gas and natural gas pipelines and $162 million in metals and mining. The hit to banks from the commodities rout is expected to be a major focus of this earnings period.
Chief executive Jamie Dimon said the largest US bank by assets excelled despite a “challenging environment.”
“We delivered solid results this quarter with strong underlying drivers,” he said. “The US consumer remains healthy and consumer credit trends are favorable.”
Earnings translated to $1.35 per share, nine cents above analyst expectations.
Shares of JPMorgan rose 3.1 percent in pre-market trade to $61.10.
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