New York, NY, United States (4E) – JPMorgan Chase & Co. reported a drop in first quarter earnings as the bank posted lower revenue.
Profit was $5.27bn, or $1.28 per share, compared with a $6.53bn profit, or $1.59 per share, in the previous year. Revenue dropped to $23.86bn, according to the New York-based lender.
Analysts predicted a profit of $1.40 per share on $24.53bn revenue.
JPMorgan’s results are considered by investors as a bellwether for the entire banking industry. The company’s performance shows that despite signs of loan growth, large banks are still struggling because of the sluggish U.S. economy and the effect of low interest rates on earnings from trading, investing and lending.
JPMorgan also agreed last year to pay more than $20bn in legal settlements. Litigation-related expenses for the year rose to $11.bn in 2013, more than double the amount from the previous year.
Chief Executive Jamie Dimon told shareholders this week that resolving the company’s legal issues in the past year has been the most painful, difficult and nerve-wracking experience for him professionally.