JPMorgan Chase reported second-quarter earnings that beat on both the top and bottom line Friday morning, as strong lending results offset declines in trading.
Earnings per share: $1.82 versus $1.58 estimated.
Revenue: $26.41 billion versus $24.96 billion estimated.
Shares rose 1 percent in premarket trade before erasing gains.
In the second quarter of last year, the bank reported earnings of $1.55 per share on revenue of $25.2 billion.
“We continued to post very solid results against a stable-to improving global economic backdrop. The U.S. consumer remains healthy, evidenced in our strong underlying performance in Consumer & Community Banking,” JPMorgan CEO Jamie Dimon said in a release.
However, overall markets revenue declined 14 percent year-on-year. Fixed income trading fell 19 percent, “due to reduced flows driven by sustained low volatility and tighter credit spreads, against a strong prior year.”
Stock trading revenue fell 1 percent year-on year.
Wall Street was watching whether trading revenues have held up amid low market volatility. In the first quarter, the bank reported a 17 percent year-on-year increase in revenue from fixed income trading.
Loan growth and any comments from Dimon during the earnings conference call could shed light on the state of economic growth.
JPMorgan said in late June it authorized share buybacks of up to $19.4 billion between July 1 and June 30 next year, its largest since the financial crisis.
Along with 33 other banks, JPMorgan passed the second round of the Federal Reserve’s annual stress tests in late June when the central bank did not object to any of their capital return plans. Only Capital One Financial was given conditional approval of its plan. All 34 banks also passed the Dodd-Frank Act Stress Tests for the third time by topping the Fed’s requirements for being able to handle a severe recession.
The encouraging reports sent financial stocks higher to sixth-best place in the S&P 500 for the year so far, up more than 7 percent.
Separately, Dimon said on June 8 in a memo that Matt Zames was leaving his position as chef operating officer after 13 years at firm.
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