JPMorgan Chase's first-quarter deposits unexpectedly rose from the end of last year and the firm boosted its guidance for this year's net interest income. Shares of the company surged in early trading in New York.
The lender had $2.38 trillion of deposits at the end of March, compared with $2.34 trillion three months earlier, the company said in a filing Friday. The influx of client money more than offset drains from inflation and customers' seeking higher-yielding alternatives.
Net interest income was $20.7 billion in the quarter, a 49% jump and above analysts' expectations. JPMorgan raised its full-year NII guidance to about $81 billion from its roughly $73 billion estimate earlier this year, noting there are "significant sources of uncertainty."
JPMorgan's results offer an early look at how the biggest banks fared through a tumultuous quarter. Rivals Wells Fargo and Citigroup also report Friday, while PNC Financial Services kicks off results for regional lenders.
"The U.S. economy continues to be on generally healthy footings — consumers are still spending and have strong balance sheets, and businesses are in good shape," Chief Executive Officer Jamie Dimon said in a statement. "However, the storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks."
Shares of JPMorgan, down 3.8% this year through Thursday, rose 5.4% in early trading in New York.
JPMorgan boosted its pile of reserves for potentially soured loans by $1.1 billion. Results also included a $868 million hit for net investment securities losses.
Dimon wrote in his annual letter to shareholders earlier this month that issues at Silicon Valley Bank, which was seized by regulators in March, were "hiding in plain sight." He predicted the episode is "not yet over" and warned that fallout will be felt for years.
