(Adds estimate, details on results, shares)
April 13 (Reuters) - JPMorgan Chase & Co's quarterly profit fell short of Wall Street expectations on Friday as lower revenue from investment banking ate into gains from U.S. corporate tax changes and higher interest rates.
Revenue grew across its businesses as borrowing rose amid strong economic growth. Higher interest rates lifted lending revenue more than the bank's cost of money and its equity markets business had a strong quarter, which it attributed to derivatives trading and prime services.
Investment banking, however, was a dark spot, with revenue falling 7 percent on lower debt and equity underwriting fees.
Overall profit rose 35 percent, while revenue gained about 10 percent in the first quarter ended March 31.
The bank's shares were up nearly 1 percent in premarket trading on Friday. The stock has gained 33 percent in the past 12 months.
"2018 is off to a good start with our businesses performing well across the board, driving strong top-line growth and building on the momentum from last year," Chief Executive Officer Jamie Dimon said in a statement.
JPMorgan, like its rivals, had indicated that President Donald Trump's sweeping changes to the U.S. tax law would kick-start economic growth and help lenders boost their revenue as corporations borrow more to expand their businesses.
Income tax expense was down 8.6 percent at $2.56 billion as the U.S. corporate tax rate fell.
The bank's net income rose to $8.71 billion from $6.45 billion a year earlier.
Excluding items, it earned $2.26 per share, missing average estimate of $2.28, according to Thomson Reuters I/B/E/S.
Net revenue was $28.52 billion, beating the average estimate of $27.68 billion.
Markets revenue rose 7 percent, excluding special items, on increased equity trading.
Global markets have been in churn since February due to worries over inflation, rising bond yields and heightened trade tensions between the United States and China.
Net interest income rose 9 percent to $13.5 billion as the rates it received for loans rose faster than its costs of funds.
Return on tangible common equity, a performance measure, was 19 percent, compared with 13 percent a year earlier. JPMorgan in February raised its return target for three years out to 17 percent, largely because of lower tax rates. (Reporting by Sweta Singh in Bengaluru and David Henry in New York; Editing by Saumyadeb Chakrabarty)