The News

JPMorgan Chase, the most important lender within the United States, made $14.5 billion in revenue final quarter, a giant leap from the identical interval final yr, it reported on Friday. The financial institution was helped by development nearly throughout the board, together with will increase in lending and credit-card transactions, in addition to relative stability in funding banking. JPMorgan’s inventory rose greater than 2 p.c.

It was one other quarter of banner monetary outcomes, and a reminder that in banking, the wealthy are likely to get richer.

Why It Matters

Given its measurement, JPMorgan is a proxy for the banking trade at giant. Jamie Dimon, the financial institution’s chief government, has deep political connections and his prognostications on the economic system are scrutinized in some circles as intently as a central banker’s musings.

On Friday, in a press release, Mr. Dimon mentioned the U.S. economic system was “resilient,” echoing language he has used repeatedly this yr, however listed a litany of dangers, together with that buyers are burning by means of their money buffers and that inflation stays excessive.

And there have been two attention-grabbing side-notes within the financial institution’s newest outcomes: Its whole deposits dropped barely, a sign that buyers are shifting their money elsewhere in an period when higher interest rates have made it easier to search out higher-paying investments than in checking accounts. Separately, but in addition associated to rates of interest, final quarter JPMorgan misplaced $900 million on investments in U.S. Treasury bonds and mortgage-backed securities, which have dropped in worth as charges rise — however that was barely a dent in its outcomes.

Background

JPMorgan and Mr. Dimon have been all over the news this yr, due to their distinguished function as an tried stabilizing pressure throughout the spring’s banking disaster that felled three smaller lenders. JPMorgan bought a type of failed banks, First Republic. In a sign of how troubled that establishment had turn out to be, JPMorgan mentioned Friday that it was setting apart $1.2 billion to cope with losses in First Republic’s lending portfolio.

Analysts nonetheless anticipate the acquisition to show worthy ultimately, due to First Republic’s base of rich shoppers and coastal branches, which Friday’s outcomes present are already buoying JPMorgan’s asset and wealth administration arms.

What’s Next

The subsequent week or so will see a slew of different banks report their quarterly earnings. Among probably the most intently watched will likely be Wednesday’s outcomes from Goldman Sachs, which has hinted publicly of a disappointing stretch, and regional banks like Western Alliance and Comerica, which will likely be trying to show they’ve bounced again from their latest troubles.