US banking giant JP Morgan Chase revealed an $8.4bn (€6.4bn) pay and bonus bill for the first three months of the year after profits jumped 33pc to a record $6.5bn (€5bn).

Kicking off the US bank earnings season, JP Morgan hailed a "very good start to the year" as profits rose despite underlying revenues slipping 3pc to $25.8bn (€19.8bn).

Pay and bonuses set aside were 19pc higher than the previous three months, but 2pc lower than a year earlier. Its compensation ratio – pay and bonuses as a percentage of revenues – stood at 34pc.

The corporate and investment banking business alone put by €3.4bn (€2.6bn) for staff compensation – up 54pc on the fourth quarter and 7pc lower year-on-year – after seeing net income rise 28pc.

But chief executive Jamie Dimon said the bank still had "work to do" to strengthen internal controls as it continues to recover from last year's $6bn (€4.6bn) 'London Whale' trading loss at the hands of one of its derivatives traders.

Mr Dimon, who saw his 2012 bonus slashed in half after the fiasco, said: "There is no room for compromise in meeting our obligations to comply with the new regulatory requirements and ensure that our systems, practices, controls, technology and, above all, culture meet the highest standards."

The results set the tone for the first quarter reporting season and come after JP Morgan saw a 54pc leap in 2012 profits to $5.7bn (€4.4bn).

The group employs nearly 260,000 staff worldwide.

(AP)

Irish Independent