An uptick in trading and dealmaking lifted JPMorgan Chase’s first-quarter profits out of the funk of late 2011, but the recovery fell short of the good times the largest US bank enjoyed a year ago.

The results beat Wall Street expectations. Investment banking revenue rebounded from the 2011 fourth quarter as fears about the European debt crisis eased, prompting more companies and investors to return to fixed-income and equity markets.

JPMorgan also got a boost from improvements in credit quality and loan demand. “The revenue is what really impressed me,” said Joe Terril, of money manager Terril Co, referring to a 24 per cent jump in JPMorgan’s total revenue from the fourth quarter. – (Bloomberg)