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JPMorgan Chase & Co’s quarterly profit fell short of Wall Street expectations on Friday as lower revenue from investment banking ate into gains from stock trading and higher interest rates.

Investment banking revenue fell 7 per cent as it underwrote fewer debt and equity offerings, a dark spot in an otherwise strong quarterly report.

Shares of the largest U.S. bank by assets were down nearly 1 per cent, paring early gains. The stock has risen 33 per cent in the past 12 months.

JPMorgan gained from a strengthening economy and higher interest rates that lifted lending revenue more than the its cost of money. Its equity markets business had a robust quarter, driven by a surge in volatility in global markets.

Overall, profit rose 35 per cent to an all-time high, while revenue was up 10 per cent.

“We are pleased with the firm’s performance this quarter, with all of our businesses showing continued and broad strength and an overall environment that remains supportive,” Chief Financial Officer Marianne Lake said on a call.

She expects tax cuts and higher interest rates to provide even more of a “tailwind” to profits going forward.

JPMorgan, like its rivals, had indicated that President Donald Trump’s sweeping changes to the U.S. tax law would kick-start economic growth and help lenders boost their revenue as corporations borrow more to expand their businesses.

Income tax expense was down 8.6 per cent at $2.56-billion as the corporate tax rate fell.

Markets revenue rose 7 per cent, excluding special items, on a 26 per cent jump in equity trading.

Global markets have been in churn since February due to worries over inflation, rising bond yields and heightened trade tensions between the United States and China.

Net interest income rose 9 per cent to $13.5-billion as the rates it received for loans rose faster than its costs of funds.

The bank’s net income rose 35 per cent to $8.71-billion in the first quarter.

Excluding items, it earned $2.26 per share, missing average estimate of $2.28, according to Thomson Reuters I/B/E/S.

Net revenue was $28.52-billion, beating the average estimate of $27.68-billion.

Return on tangible common equity, a performance measure, was 19 per cent, compared with 13 per cent a year earlier. JPMorgan in February raised its return target for three years out to 17 per cent, largely because of lower tax rates.