JPMorgan Chase & Co (NYSE:JPM) stock fell 5.75% (As on April 12, 11:15:31 AM UTC-4, Source: Google Finance) after the company gave underwhelming outlook for its lending business overshadowed a 6 per cent rise in first-quarter profits at America’s largest bank, as investors recalibrate interest rate expectations. The lender said net income increased to $13.4bn in the first quarter, up from $12.6bn a year earlier and better than analysts had expected.

JPM in the first quarter of FY 24 has reported the adjusted earnings per share of $4.63, beating the analysts’ estimates for the adjusted earnings per share of $3.82. The company had reported the adjusted revenue growth of 8 percent to $41.9 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $38.5 billion. However, expenses rose to $22.8 billion, impacted by a $725 million increase to the estimated Federal Deposit Insurance Corporation (FDIC) special assessment. This increase contributed to a 2% rise in the overhead ratio. Credit costs totaled $1.9 billion, including $2.0 billion of net charge-offs and a $72 million net reserve release. The bank experienced a 16% increase in average loans, or a 3% rise excluding First Republic, while average deposits grew by 2%, or remained flat when excluding First Republic.

NII was $23.1 billion in the first quarter, and the company expects to earn $89 billion in NII for the year. While $1 billion higher than prior guidance, this is below the consensus of $90.68 billion. Non-interest revenue of $19.3bn is ahead by 5% y-o-y.

The current quarter reflects higher asset management fees and higher Investment Banking fees. This is predominantly offset by lower CIB Markets non-interest revenue. One negative metric is a 13% rise in non-interest expenses. This is driven by higher compensation. Notably, headcount rises by 2,000 from a year ago or 5% to almost 312,000 employees. The provision for credit losses of $1.9bn reflects net charge-offs of $2.0bn and a net reserve release of $72m. Average loans are up 16%, or up 3% excluding First Republic. Average deposits are up 2%, or flat excluding First Republic. Consumer and community banking net income falls by 8% to $4.8bn but revenue rises by 7% to $17.7bn. Banking and Wealth Management net revenue of $10.3bn is ahead by 3%. Channel highlights include a 7% y-o-y rise in active mobile banking customers.