JPMorgan Chase & Co's earnings jumped almost 400 percent in the first quarter, blowing past estimates as the largest U.S. bank released more than $5 billion in reserves it had set aside to cover coronavirus-driven loan defaults.

The bank, widely seen as a barometer of the health of the broader U.S. economy, said consumer spending in its businesses had returned to pre-pandemic levels and was up 14 percent versus the first quarter of 2019.

The results, helped by favorable comparisons to last year, also gained from a 57-percent jump in investment banking revenue.

While the largest U.S. bank saw profits crimped last year with the economic effects of the pandemic, investors are optimistic that a recovery this year on the back of President Joe Biden's $1.9 trillion stimulus package and widespread vaccinations could restore normalcy.

"We believe that the economy has the potential to have extremely robust, multi-year growth," Chief Executive Officer Jamie Dimon said in a statement. "Our credit reserves of $26 billion are appropriate and prudent, all things considered."

The bank's net income rose to $14.3 billion, or $4.50 per share, in the quarter ended March 31, from $2.9 billion, or 78 cents per share, a year earlier.

Analysts on average had expected earnings of $3.10 per share, according to Refinitiv.

Revenue jumped 14 percent to $33.1 billion.

JPMorgan changed its full-year outlook, saying it expects expenses to be slightly higher and net interest income to be lower. Revenue-related expenses rose in the first quarter, while interest rates remained near historic lows.

Investment banking revenue surged to $2.9 billion on record levels of capital markets activity, fueled largely by a surge in initial public offerings by special purpose acquisition companies.

Wall Street's boom has also been driven by record volumes of fundraising, debt refinancings, convertible bond deals and stock sales.

During the quarter, JPMorgan overtook investment banking powerhouse Morgan Stanley to become the banking world's second biggest provider of worldwide M&A advisory, according to Refinitiv. The league tables rank financial services firms by the amount of M&A fees they generate. Goldman Sachs continues to lead the rankings.

Overall trading revenue rose 37 percent to $10.1 billion, with bond trading up 15 percent. Equity markets revenue jumped 47 percent.