NEW YORK (CNN/Money) - J.P. Morgan Chase & Co. reported an unexpected gain in first-quarter earnings Wednesday, as the nation's No. 2 bank topped the most optimistic Wall Street expectations for the period.

The New York financial services company earned $1.4 billion, or 69 cents a share, up from $1.15 billion, or 57 cents a share, earned before special items a year earlier. Analysts surveyed by earnings tracker First Call were looking for earnings per share of 51 cents, and had a range of EPS estimates between 45 and 60 cents.

The company saw improvement in its investment banking business, despite sharp drops in fees for mergers and acquisition advisory work, underwriting of equities and loan syndications, which all saw industry downturn. But strong results in its fixed income business, helped by low interest rates, helped lift revenue in the segment by 11 percent and income by 22 percent.

Chase financial services posted a 21 percent rise in revenue and a 39 percent increase in income. The retail banking unit saw its home finance operations post record revenues, up 116 percent from a year earlier, as the low mortgage interest rates drove refinancing activity.

Investment banking and private banking posted a 16 percent decline in revenue and a 50 percent fall in profits in the face of weakness in U.S. equities markets. But even that unit showed improved profits compared to the fourth quarter of 2002.

Company-wide revenue rose 12 percent to $8.9 billion from $7.9 billion a year earlier.

The company did not give any specific guidance for future periods in its earnings report, although it quoted CEO William Harrison as saying the bank remains cautious in its outlook for the year.

Shares of J.P. Morgan Chase (JPM: up $0.43 to $27.30, Research, Estimates), a component of the Dow Jones industrial average, were slightly higher in morning trading Wednesday.