JPMorgan beats earnings and revenue forecasts, shares slightly higher

JPMorgan earnings

JPMorgan Chase & Co. (NYSE: JPM) announced its fiscal 2019 second-quarter earnings results before markets opened on Tuesday, July 16. The banking giant saw its net income jump 16% from the previous year, thanks in part to a lower tax rate as well as the ability to charge consumers and businesses more to borrow money.

New York-based JPMorgan reported a $768 million income tax benefit that improved its earnings by $0.23 per share. Interest revenue grew 7% from a year earlier, helped by the benefit of higher interest rates.

Shares of America’s largest bank declined 1.6% in premarket hours to change hands at $112.01 apiece following the results. The stock has gained more than 16% since the beginning of the year.

JPM Earnings

JPMorgan reported net income of $9.652 billion, or $2.82 per share, in Q2 2019, up 16% from the $8.316 billion, or $2.29 per share the bank had in the same period last year. On average, analysts surveyed by Refinitiv had expected earnings of $2.50 per share.

Companywide revenue came to $29.566 billion in the quarter, up 4% from $28.388 billion generated in the prior-year period. Analysts on Wall Street had forecast revenue of $28.835 billion.

JPMorgan generated revenue of $3.69 billion in its fixed income trading business, while its equities trading unit brought in revenue of $1.73 billion in the three months ended June 30.

Analysts had expected revenue of $3.36 billion in the bank’s fixed income trading business, and revenue of $1.84 billion in the equities trading unit.

JPMorgan Chase CEO Comments

Jamie Dimon, Chairman and Chief Executive Officer of the bank commented on the results in a statement. “We had a strong second quarter and first half of 2019, benefitting from our diversified global business model. We continue to see positive momentum with the U.S. consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our Consumer & Community Banking results.”

“Double-digit growth in credit card sales and merchant processing volumes reflected healthy consumer spending and drove 8% growth in credit card loans, while mortgage and auto originations showed solid improvement, and we continued to attract new deposits, up 3%. Client investment assets were up 16%, driven by both physical and digital channels, including You Invest,” Dimon added.

JPMorgan Chase & Co Profile

JPMorgan Chase is one of the largest and most complex financial institutions in the United States, with more than $2.5 trillion in assets. It is organized into four major segments–consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. JPMorgan operates, and is subject to regulation, in multiple countries. – Warrior Trading News