U.S. bank JPMorgan Chase on Thursday said it earned $2.14 billion for the first quarter due to an increase in trading activity and deposits. The bank's profit was 10 percent lower than last year, but better than expected, especially in the midst of an ever-widening financial crisis. JPMorgan has not posted a quarterly loss since the financial crisis began in late 2007. Like other banks, JPMorgan's loans are still seeing defaults increase, as its credit costs amounted to $10 billion. But, the company is benefiting from a jump in mortgage refinancing and deposits, as well as low interest rates. When a bank can borrow cheaply, it can profit more from lending. JPMorgan says it earned $2.14 billion in the first quarter, or 40 cents per share, on record revenue of $26.9 billion. That figure is down from last year's net income of $2.37 billion, or 67 cents per share. But analysts predicted a profit of 32 cents per share, according to Thomson Reuters. Its shares were up nearly 2 percent in pre-market trading. JPMorgan's profit postings came a week after another big bank, Wells Fargo, surprised investors by announcing a record $3 billion quarterly profit. “It is reasonable to expect additional increases to credit reserves if the economic environment worsens. Yet, we are confident that even a highly adverse economic scenario would not compromise our overall strength and stability—or our ability to enhance our franchises,” JPMorgan CEO Jamie Dimon said in a statement. JPMorgan said it extended $150 billion in new credit during the first quarter. JPMorgan's investment bank pulled in a record profit of $1.6 billion. But, in a conference call, Dimon said that he does not expect the investment bank's results to stay as strong throughout the year. “It's unreasonable to expect that to continue.”
