Wall Street giant JPMorgan Chase & Co. recorded the highest quarterly profit in its history Friday, as the company benefited greatly from the new tax law passed late last year.

JPMorgan Chase, the nation’s largest bank by assets and deposits, had a profit of $8.71 billion in the first quarter, a jump of 35% from a profit of $6.45 billion in the same period a year earlier. On a per-share basis, JPMorgan earned $2.37 a share, up from $1.65 per share, beating analysts’ forecasts.

JPMorgan’s results were driven by two factors: higher interest rates, which have allowed banks like JPMorgan to charge more for customers to borrow, and a much lower corporate tax rate.

While JPMorgan’s pretax income rose by $2 billion in the quarter, the company said it paid $240 million less in taxes compared to a year earlier.

“The global economy continues to do well, and we remain optimistic about the positive impact of tax reform in the U.S. as business sentiment remains upbeat, and consumers benefit from job and wage growth,” said JPMorgan Chase CEO Jamie Dimon in a statement.

The Federal Reserve has been steadily raising interest rates for more than two years now, and banks have started benefiting from this change. Net interest income at JPMorgan was $13.3 billion, up 10% from a year earlier.

JPMorgan’s investment bank also had a solid quarter, helped by much more volatile and active markets last quarter. Net income in the investment bank was $3.97 billion, up from $3.24 billion a year earlier.

JPMorgan’s quarterly revenue was $28.52 billion, up from $25.85 billion.

For the quarter, there were some concerns about JPMorgan’s credit quality, however. The bank had to set aside more money to cover potentially bad loans, and the bank’s total charge-off rate—the percentage of loans it expects are not likely to be repaid—climbed to 1.2% of all loans. That compares to 1.07% of loans in the second quarter of 2017.

Citigroup’s results

Citigroup’s first-quarter profits rose by 13% from a year earlier, the bank said Friday, as Citi benefited from the new tax law, higher interest rates and a steadily growing global economy.

Citigroup reported a profit of $4.62 billion, or $1.68 a share, compared with a profit of $4.09 billion, or $1.35 per share, in the same period a year earlier. The results beat analysts’ forecasts for earnings of $1.61 a share, according to FactSet. It was the largest quarterly profit that Citi has reported since 2015.

Like its competitor JPMorgan Chase, Citigroup benefited this quarter from the tax law passed late last year. While revenues were up modestly in Citi’s overall business, the amount of money it paid in taxes fell 23% from a year earlier.

Wells Fargo, which also reported its results Friday, also reported a drop in the money it paid in taxes, which also helped its bottom line.

Read: Wells Fargo may be hit with $1-billion settlement

Citi saw revenue growth across much of its business, from its large global consumer banking franchise to its investment bank, which largely works with large corporate clients with international banking needs. The bank grew loans quite noticeably, from $629 billion to $673 billion in the quarter, and grew deposits to over $1 trillion.

Revenues in its consumer bank were up 7% from a year earlier, with growth in all of its major geographies: U.S., Asia and Latin America. The bank also saw gains in its trading revenue, helped by the more volatile markets last quarter.

Total revenues at Citi were $18.87 billion, compared with $18.37 billion a year earlier.

Other big U.S. banks, including Goldman Sachs, Morgan Stanley and Bank of America, will report their results early next week.

Read: What we learned from the big banks’ proxy circulars, for more on Canada’s financials

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