The profits of JPMorgan Chase, the largest bank in the United States, were up very strongly in the first quarter. Investment bank Goldman Sachs also had an excellent quarter.
American banks mainly benefit from rising stock market prices, advising on merger and acquisition deals and guiding IPOs.
JPMorgan’s net profit jumped to $ 14.3 billion from $ 2.9 billion a year earlier. This was also mainly due to the release of $ 5.2 billion in reserves that had previously been set aside for loans that may not be repaid due to the corona crisis. Thanks to the economic recovery from the crisis and the US government’s enormous aid packages, that threat has now diminished a lot.
Goldman Sachs, the best-known investment bank on Wall Street, posted a profit of $ 6.7 billion against $ 1.1 billion a year ago. Goldman Sachs and JPMorgan did good business in equity trading, thanks to the record stock market boom in recent times.
More was also earned with the bond trade. This also applied to the committees for advice on acquisitions and mergers due to the recent boom in corporate takeovers and for guiding companies that go to the stock exchange.
JPMorgan’s total revenues climbed 14 percent to more than $ 33 billion. CEO Jamie Dimon spoke of solid results, partly driven by the economic recovery in the US. He thinks economic growth will continue in the coming years, helped in part by President Joe Biden’s massive infrastructure investment package and the US central bank’s lenient monetary policy.
Goldman Sachs more than doubled its revenues to $ 17.7 billion. The investment bank is the worldwide market leader in advising on acquisitions and mergers and guiding IPOs and share issues. According to Goldman Sachs CEO David Solomon, record results were achieved.
Wells Fargo, the largest US mortgage lender, posted a profit of $ 4.7 billion. That was $ 653 million a year ago. This was mainly due to the sharply lower reserves for bad loans at the bank.