Banks Report Strong First-Quarter Results

J. P. Morgan & Co. led a small flood of major banks reporting stronger results Thursday, as record trading revenue aided the big New York bank and fee income, better credit quality and low interest rates helped others.

Wall Street, nevertheless, took a dim view of the results. Banking stocks were pounded on the New York Stock Exchange, where skeptical analysts saw hidden charges and hazy prospects in the earnings reports.

Even Morgan, which earned $432 million, or $2.16 a share, before accounting changes in the first quarter and far exceeded analysts’ estimates, was aggressively sold off on Wall Street. Its stock was off 75 cents to $70.75 on the NYSE.

Morgan said its higher profit, up strongly from $264 million, or $1.32 a share, in the year-ago quarter, was largely because of record trading revenue.

At Chicago’s Continental Bank Corp., an 8% increase in revenue and a 3% drop in operating expenses led to a first-quarter net income of $141 million, against $57 million last year. Net earnings got an $80-million boost in the latest quarter from an accounting change for income taxes.