JP Morgan shares drop as first quarter disappoints

 
Harriet Green
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The first of the big banks to report first-quarter earnings, JP Morgan has posted results significantly below estimates.

Net income fell to $5.3bn (£3.2bn), compared with $6.5bn a year earlier - that’s earnings of $1.28 per share, below expectations of analysts polled by Bloomberg of $1.46.

In the first quarter of 2013, the figure was $1.59 per share - so an 18.5 per cent drop.

Revenue came in at $23.9bn, also below expectations ($24.5bn), and eight per cent lower than a year earlier.

Investors weren’t expecting anything very impressive from the investment bank, which has re-stressed the industry-wide headwinds in Markets and Mortgage which have hit its performance.

The first quarter is traditionally known for being robust when it comes to fixed-income trading, but wobbles in the US economy have weakened investor confidence.

Shares have fallen more than two per cent in pre-market trading.