Of all the cases of economic espionage charged by the DOJ's National Security Division since 2012, more than 80% of them implicated China.World Politicsread more
"Whilst there is a big dispute at the moment, I think there's also potential for resolution," UBS chairman Axel Weber says of the U.S.-China trade negotiations.World Economyread more
Cryptocurrency fans will hope the futures contracts, which are federally regulated, can provide some much-needed legitimacy to bitcoin.Cryptocurrencyread more
Despite mixed fan and critic reactions to the final season of "Game of Thrones," the eight-season epic took home the top prize in the drama category at the Emmy Awards on...Entertainmentread more
There are alternative financial centers and investors can turn to Singapore, Tokyo or Shanghai if Hong Kong doesn't "shape up," says the founder and chairman of Citic Capital.Asia Economyread more
The Kingdom and oil and gas industry have been slow to shore up defenses, raising red flags about the possibility of longer term fall-out in the region.Technologyread more
Tensions between South Korea and Japan may ultimately disrupt the high-end tech sectors, says Heenam Choi, CEO at South Korea's sovereign wealth fund.Traderead more
On Sunday, the 71st Primetime Emmy Awards honored the best comedies, dramas, limited and variety series from the last year.Entertainmentread more
U.S. President Donald Trump's national security advisor said on Sunday that White House Asia policy adviser Matt Pottinger would become his top deputy.Politicsread more
Removing Neumann is a difficult decision for Son, who has long believed in WeWork and Neumann's vision to quickly expand the company.Technologyread more
Datadog went public on Thursday and instantly hit a $10 billion valuation, becoming the fourth cloud software debut to reach that level this year.Technologyread more
J.P. Morgan Chase on Friday reported record first-quarter profit and revenue that exceeded analysts' expectations as the bank benefited from higher interest rates.
The company said profit rose 5 percent to $9.18 billion, or $2.65 a share, compared with analysts' average estimate of $2.35 a share. Revenue also rose 5 percent to $29.9 billion, exceeding estimates by about $1.5 billion as net interest income grew 8 percent, thanks to the "impact of higher rates," J.P. Morgan said in a release. The boost was evident in the bank's huge retail lending business, where profit surged 19 percent to $3.96 billion.
Shares rose 4.2 percent, heading for the biggest one-day increase since November 2016.
"We had record revenue and net income, strong performance across each of our major businesses and a more constructive environment," CEO Jamie Dimon said in a statement.
"Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong."
J.P. Morgan, the biggest U.S. bank by assets, is the first major lender to report earnings. Its results may allay fears about the sector after the Federal Reserve signaled it was pausing rate hikes for the remainder of the year. Combined with signs of a global economic slowdown, the central bank's actions punished bank stocks because the inverted yield curve crimps the industry's profit margins and signals a possible recession on the horizon.
But J.P. Morgan's results showed that it still benefited from the Fed's last move to hike its benchmark rate in December, the fourth time it raised rates last year.
That was most clear in the bank's consumer lending division, one of the two biggest segments for the company. Profit rose 19 percent to $3.96 billion as revenue climbed 9 percent to $13.8 billion. The division grew the profit margin on deposits and grew loans across credit card and auto units. Meanwhile, the provision for credit losses stayed flat from a year earlier at $1.3 billion.
The company, led by Dimon since 2005, has resumed its pattern of exceeding analysts' profit expectations. In the fourth quarter, the bank under-delivered after beating expectations for 15 straight quarters on tough trading results.
The bank said in February that first-quarter trading revenue was headed for a "high-teens" percentage drop from a year earlier as both equities and fixed income desks struggled amid slower client activity.
That warning proved true. In J.P. Morgan's investment bank, the biggest in the world by revenue, first-quarter trading revenue dropped 17 percent to $5.5 billion. Excluding the impact of a year-earlier accounting change, bond trading declined 8 percent and stock trading revenue dropped 13 percent. Banking revenue rose 8 percent to $3.2 billion on higher debt underwriting and advisory fees. The overall division's profit of $3.25 billion was 18 percent lower than a year earlier.
J.P. Morgan's asset management division said profit dropped 14 percent to $661 million on lower market levels and brokerage activity in the quarter. The firm's commercial bank posted profit of $1.05 billion, 3 percent higher than a year earlier.
Nonetheless, the bank continued making long-term investments in its business. J.P. Morgan said it's expanding its branch network to cover nearly all of the U.S. population by 2022. It also announced the first cryptocurrency from a major U.S. bank, and pledged $350 million to boost the job prospects of people in under-served communities.
Here's what Wall Street expected:
Earnings: $2.35 per share, a 0.7% decline from a year earlier, according to Refinitiv.
Revenue: $28.4 billion, a 0.3% decline from a year earlier.
Net Interest Margin: 2.57%, according to FactSet
Trading Revenue: Fixed income $3.64 billion, Equities $1.76 billion
Wells Fargo also reported earnings Friday, beating expectations on strong consumer lending.