JP Morgan Chase reports a 79% increase in trading revenue in the second quarter

JP Morgan Chase reports a 79% increase in trading revenue in the second quarter
Written by:
Wajeeh Khan
14th July, 12:15
  • JP Morgan Chase reports a 79% increase in trading revenue in the second quarter.
  • The U.S. investment bank tops analysts' estimates for earnings and revenue in Q2.
  • The American multinational's net income came in lower than the same quarter last year.

JP Morgan Chase (NYSE: JPM) published its quarterly results on Tuesday that highlighted a 79% increase in trading revenue in the second quarter. The bank was reported seeking up to £8 billion for alternative investments in April.

Shares of the company jumped about 4% in premarket trading on Tuesday. At £78.14 per share, JP Morgan is roughly 30% down year to date in the stock market after recovering from an even lower £63 per share in March. Learn more about value investing strategy.

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JP Morgan’s Q2 financial results versus analysts estimates

According to Refinitiv, experts had forecast the company to print £24.18 billion in revenue in the second quarter. Their estimate for earnings per share was capped at 83 pence per share. In its report on Tuesday, JP Morgan Chase topped both estimates posting a higher £26.34 billion in revenue and £1.10 of earnings per share.

At £3.74 billion, the U.S. investment bank’s net income in Q2 came in significantly lower than £7.70 billion in the same quarter last year. On a year over year basis, its revenue was reported 15% higher. Deutsche Bank was recently reported to have taken on clients dumped by JP Morgan.

In terms of net interest income, the American financial services holding company said it saw a 4% decline in the recent quarter versus FactSet consensus of £11.14 billion. Noninterest revenue, on the other hand, noted a 33% growth in the second quarter to £15.88 billion that topped analysts’ estimates of £12.56 billion.

Other prominent figures in JP Morgan’s report on Tuesday include a 26% increase in its revenue from consumer banking to £4.07 billion, a 16% growth in revenue from corporate and investment banking to £13.09 billion, a 5% boost to revenue from commercial banking to £1.92 billion, and a 1% increase in its revenue from asset and wealth management to £2.87 billion.

CEO Jaime Dimon’s comments on Tuesday

JP Morgan also accentuated on Tuesday that its revenue from fixed income markets posted an almost 100% increase in the recent quarter to £5.83 billion while the revenue from equity markets came in 38% stronger at £1.92 billion. According to CEO Jaime Dimon of JP Morgan:

“Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy. However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm.”

At the time of writing, the New York-based bank is valued at £237.45 billion and has a price to earnings ratio of 11.02.

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