Adam Shell

USA TODAY

JPMorgan Chase reported strong first-quarter results, topping Wall Street's forecasts for earnings and revenue handily, and the bank's CEO Jame Dimon gave an upbeat assessment of U.S. consumers and businesses.

The nation's largest bank by assets reported a 17% rise in net income of $6.4 billion and earnings per share of $1.65, beating analysts forecast of $1.52 by 13 cents, according to Thomson Reuters. Revenues also came in stronger than expected at $25.6 billion, up 6% from last year's first quarter and above estimates of $24.9 billion.

"We are off to a good start to the year," Dimon said in an statement, adding that all of the bank's business segments were "building on their momentum from last year."

In early trading, the bank's shares were up $1.33, or 1.6%, to $86.73, outpacing a flat start to the day for the broad U.S. stock market. The stock, which surged 23% from Election Day to the end of 2016, has traded flat so far this year and started Thursday's session off 1% in 2017.

JPMorgan's results and those of other big banks reporting Thursday, such as Wells Fargo and Citigroup, were being closely watched by Wall Street, as their results will set the tone for the entire first-quarter earnings season.

In a statement, Dimon issued a positive outlook on the state of the U.S. consumer.

“U.S. consumers and businesses are healthy overall and with pro-growth initiatives and improving collaboration between government and business, the U.S. economy can continue to improve," Dimon said.

JJ Kinahan, chief market strategist at TD Ameritrade, reacted favorably to the bank's results and Dimon's bullish comments on his broad client base, which bodes well for the economy's ability to resume faster growth after slowing in the first three months of the year to a roughly 1% pace.

"CEO commentary is one of the most important parts of earnings season," says Kinahan. "Dimon's positive tone and his stressing that all businesses are doing well gives investors hope that the stock market rally can continue."

The bank reported that loan activity at the consumer level rose 11% and that credit card sales volume was up 15%, a sign that consumers feel confident enough to take on new debt and use credit cards to make purchases.The bank did set aside an additional $380 million for potential future credit losses, but downplayed that move, saying it was in line with its expectations.

"The consumer businesses," Dimon wrote, "continue to grow core loans at double digits," adding that "we once again had very strong card sales volume this quarter."

Both Dimon and chief financial officer Marianne Lake, said the impact of a weak retail sector, especially bricks-and-mortar retailers like Payless and Sears which recently announced store closings due to falling profits, would not impact the bank's results in a meaningful way. "Nothing dramatic," Dimon said.

Lake said the bank will benefit from additional rate hikes from the Federal Reserve, but pointed out that future hikes are likely to come later in 2017, so the benefits to the bank's bottom line will also be pushed out. Higher rates boosts bank profits because it improves its so-called "net interest margins -- the difference between the interest banks make in loans and what they pay out in interest to depositors.

JPMorgan's first-quarter results were also boosted by market activity, with its overall markets-related trading revenue up 13%, driven largely by a 17% rise in its fixed-income, or bond, business.

In a conference call with Wall Street analysts this morning, both Dimon and chief investment officer Marianne Lake, said they are still hopeful that President's pro-growth proposals, despite not getting implemented as quickly as hoped, will eventually be enacted. Trump's proposals to reduce regulations and slash corporate taxes is viewed as positive for JPMorgan's future profits.

The president's growth-friendly agenda, however, is currently in a holding pattern as the Trump administration has suffered a setback on its plans to repeal and replace Obamacare. But Dimon says that it's not unexpected for new administration's to suffer "ups and downs in the sausage-making period" when new laws and economic policies are being negotiated. He added that Trump's growth-friendly policies will benefit the economy when they are eventually enacted.

Trump's proposals are "pro growth," Dimon said. "Tax reform. Spending on infrastructure. Regulatory reform. That will help all Americans."

JPMorgan also reported record revenue of $2 billion in its commercial banking business.