JPMorgan Chase (NYSE:JPM) is one of the largest financial institutions in the United States. Shares have climbed 16.2% in 2019 as of close on April 18. The bank released its first-quarter results for fiscal 2019 on April 12.
The continued benefits of U.S. tax reform and a robust economic environment have both contributed to a solid showing in the first quarter.
Profit climbed 5% from the prior year to $9.18 billion and revenue increased 5% to $29.9 billion. Net interest income rose 8% largely due to the impact of higher rates.
The U.S. Federal Reserve has vowed to pause its rate tightening path, and most analysts expect static rates into 2020. However, strong economic conditions and an improved market could result in another policy U-turn.
The stock has now climbed 10.3% over the past month. There is concern that the benefits of tax reform are wearing off, while broader economic headwinds also have many economists and analysts calling for an earnings slowdown into the next decade.
Goldman Sachs (NYSE:GS) stock has increased 5.8% over the past month. Shares have surged 23.2% in 2019 so far. In Q1 2019 Goldman Sachs generated $2.25 billion in profit or $5.71 per share.
Analysts had expected earnings per share of $4.89. Revenue did slip by 13% from the prior year to $8.81 billion, which missed analyst estimates.
Shareholders can enjoy the wave to start 2019 but they should retain a healthy pessimism about how the rest of 2019 will shake out. Still, for the time being broader tailwinds are supporting top U.S. bank stocks.
