For JPMorgan Chase & Co., last quarter’s volatility appears to have been just right.
Revenue and profit for the first three months of 2018 rose to all-time highs, the bank said Friday, spurred by record results from stock trading. Revenue jumped at nine of the bank’s 11 largest business lines, according to a statement.
Bankers who last year griped about the lack of volatility suddenly had the opposite complaint: Wild market swings were threatening to push wary investors to the sidelines. But all told, the first-quarter mix featured enough activity to boost revenue.
Traders benefited as interest rates rose and stocks at one point had their worst single-day plunge in seven years. The results bode well for the rest of Wall Street, including Citigroup Inc., which reports earnings later Friday.
Equities trading contributed $2.02 billion of revenue, a 26 percent gain that beat analysts’ estimates. Bond-trading revenue rose 8 percent in the quarter to $4.55 billion, while the bank said fixed-income revenue was flat excluding one-time gains.
Net interest income jumped 9 percent to $13.5 billion after the Federal Reserve raised its benchmark rate four times since the start of last year.
JPMorgan said it expects net interest income to be as much as $55 billion for the year, sticking with the company’s previous full-year target. Banks are benefiting from rising interest rates as they charge borrowers more while keeping their deposit rates low.