JPMorgan Tops Estimates; Reports Q2 Record Profit

JPMorgan Chase & Co. (NYSE: JPM) reported its second quarter financial results and topped analysts’ estimates in both revenue and earnings. The bank’s shares were trading 0.5% higher during Friday’s pre-market hours after reporting record high second quarter profits.

For the second quarter, JPMorgan reported profits of USD 8.32 Billion, growing 18% year over year and topping analysts’ forecast of a 9.4% increase. The bank reported revenue of USD 28.4 Billion and an EPS of USD 2.29.

JPMorgan traders exceeded expectations during the strong quarter. Bond trading generated USD 3.5 Billion in revenue, topping estimates of USD 3.18 Billion. Stock trading drove in revenue of USD 2 Billion and Investment Banking revenue drew in USD 1.9 Billion. Assets under management grew by 8% to USD 2 Trillion.

“We see good global economic growth, particularly in the U.S., where consumer and business sentiment is high. Because of this broad growth and the strong underlying performance across each of our businesses, the company delivered record results this quarter. We also want to acknowledge that global competition is getting stronger.” said Jamie Dimon, Chairman and Chief Executive Officer.

The bank’s segments all saw strong growth year over year. Consumer and Community Banking segment reported revenue of USD 12.5 Billion, growing 17% year over year. The Company said it was predominantly driven by higher net interest income as a result of higher deposit margins and growth.

Client investment assets grew by 12% to USD 284 Billion and credit card sales grew by 11%, while merchant processing volume increased by 12%.

“The healthy U.S. consumer drove double digit growth in client investment assets, card sales and merchant processing volumes,” added Dimon.

Corporate and Investment Bank report revenue of USD 9.92 Billion, growing 11% year over year, driven by higher equity and underwriting and advisory fees. Commercial Banking reported revenue of USD 2.31 Billion, growing 11% year over year, while average loan balances grew by 4%.

JPMorgan also announced its new capital distribution plan, which includes increase in dividends and share repurchases. The bank received approval from the Federal Reserve Board to increase its quarterly dividend to USD 80 cents, up from USD 56 cents.

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