09:30 AM EDT, 04/12/2024 (MT Newswires) -- JPMorgan Chase ( JPM ) on Friday reported better-than-expected first-quarter earnings and revenue even as the banking giant's net interest income fell short of analysts' estimates while it raised its full-year expense outlook.

Per-share earnings advanced to $4.44 from $4.10 a year earlier, topping the consensus on Capital IQ for $4.14. During the March quarter, the lender paid $725 million on top of the $2.9 billion in the previous three-month period to help the Federal Deposit Insurance Corp. recover losses tied to bank failures last year. The increase reduced EPS by $0.19. On an adjusted basis, JPMorgan's ( JPM ) earnings totaled $4.63 a share.

Consolidated revenue climbed 9% to $41.93 billion, above Wall Street's $41.69 billion view. Net interest income rose 11% to $23.2 billion on a fully taxable equivalent basis, but was below the forecast on Visible Alpha for $23.28 billion. Noninterest revenue added 7% to $18.85 billion on a reported basis and 5% on a fully taxable equivalent basis.

Shares of the bank slipped 3.3% in recent premarket activity.

Net interest income declined 4% sequentially and fell 2% excluding markets due to deposit margin compression and lower deposit balances, mostly in consumer and community banking," Chief Executive Jamie Dimon said in a statement. "Looking ahead, we expect normalization to continue for both (net interest income) and credit costs."

Consumer and community banking revenue rose 7% to $17.65 billion aided by a 3% gain in banking and wealth management to $10.32 billion. The corporate and investment banking segment remained nearly flat at $13.63 billion, despite a 27% surge in investment banking that was driven by higher debt and equity underwriting fees.

Commercial banking revenue advanced 13% to $3.95 billion strengthened by payments fee growth, while asset and wealth management sales moved up 7% to $5.11 billion. Assets under management soared 19% to $3.6 trillion, boosted by continued net inflows and higher market levels.

JPMorgan's ( JPM ) provision for credit losses was $1.88 billion for the quarter, including net charge-offs of $2 billion and a net reserve release of $72 million. Last year's provision totaled $2.28 billion.

For full-year 2024, the lender now anticipates adjusted expenses of $91 billion, including the increase to the FDIC special assessment. In January, the bank estimated expenses of $90 billion for the year. It continues to expect net interest income of $90 billion for 2024.

"Many economic indicators continue to be favorable," Dimon said. "However, looking ahead, we remain alert to a number of significant uncertain forces." Those factors include "a large number of persistent inflationary pressures" that are likely to continue and rising geopolitical tensions, he said.

"We do not know how these factors will play out, but we must prepare the firm for a wide range of potential environments to ensure that we can consistently be there for clients," according to Dimon.

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