JP Morgan beats analysts' forecasts with second quarter numbers
JP Morgan Chase beat analysts' forecasts for both top and bottom line growth in the second quarter, buoyed by bumper growth in its investment and commercial banking units.
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"We see good global economic growth, particularly in the U.S., where consumer and business sentiment is high. [...] We also want to acknowledge that global competition is getting stronger," said JP Morgan boss, Jamie Dimon.
Dimon also highlighted the lender's planning during the quarter for greater investments in China.
The lender saw total revenues rise by 6.4% to $28.39bn over the three months to June, besting analysts' forecasts for $27.56bn, alongside an 18% rise in net income to $8.32bn, resulting in a 26.8% jump in earnings per share to $2.29 (consensus: $2.22).
Non-interest expenses meanwhile were 8% higher at $1.204bn, whil provisions for credit losses were little changed at $1.21bn.
JP Morgan's corporate and investment banking arm meanwhile clocked-in with revenues of $9.92bn, versus the $8.93bn it posted one year ago (consensus: $9.30bn).
Nevertheless, in comparison to the first three months of 2018, CIB revenues were down 5%, led by a 13% drop in those from Markets&Investor services to $6.5bn.
Versus the same quarter one year ago, fixed income markets revenues were 12% higher and those from equities by 24%.
The commercial banking division also did much better-than-expected, posting revenues of $2.32bn versus $2.09bn one year ago (consensus: $1.77bn).
Asset and wealth management revenues of $3.57bn on the other hand were up by a lesser 3.7% from the comparable year-ago period (consensus: $3.38bn).
Consumer and community banking revenues printed at up by 9.6% on a year ago, reaching $12.50bn, but nevertheless fell short of the $12.57bn that analysts had penciled-in.
Commenting on JP Morgan's results, analysts at RBC Capital highlighted the lender's better-than-expected fee and net interest income, alongside a favourable tailwind from improved credit.
As of 1629 BST, shares of JP Morgan were standing 0.41% higher at $107.26.