After adjusting for some items, earnings per share of $1.55 beat the consensus estimate of $1.43 by the analysts who were polled by S&P Global Market Intelligence.
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Trading revenues of $5.6 billion ($5.16 billion expected) were up 23% year-over-year.
JPMorgan Chase shareholders should thus be content with the bank’s results.
JPMorgan also generated a slight increase in revenue to $25.2 billion, benefiting from a trading rebound. While JPMorgan executives have said trading rebounded in April and May, that was before the referendum roiled markets and pushed out expectations for additional USA interest-rate increases to at least next year.
“The success can last for a quarter or a two, but I think it’s still going to be a very hard year”, Charles Peabody, an analyst at Portales Partners LLC, said in an interview on Bloomberg Television when asked about JPMorgan’s results.
Of course, there are good reasons for banks, including JPMorgan Chase, to cut back. The Firm is engaged in investment banking, financial services.
Chief Financial Officer Marianne Lake said that the impact of Brexit will take time and it is too early to know for sure what will happen with the bank’s employee base in the United Kingdom. Overall operating expenses fell 6 percent compared with the year-earlier period. According to Lake, client activity is “returning to normal”.
On the other side of the spectrum, the top six executives of the biggest banks in America took home a collective $123 million in 2015, almost a 10 percent increase from the previous year. Credit card sales volumes climbed 8%, while merchant processing volumes increased 13% year over year.
While JPMorgan Chase’s net income for the second quarter stayed relatively flat from a year ago, mortgage banking income took an upward turn, according to JPMorgan Chase’s Q2 Earnings Statement released Thursday.
The bank also appears to be opening up lending to a larger number of customers.
The bank announced this week it was offering raises to 18,000 of its employees, raising the bank’s minimum wage to a range of $12 to $16.50 an hour from its current minimum of $10.15 an hour.
The bank, which is the biggest in the USA, kicks off earnings season for Wall Street, and typically provides a benchmark for the five other major banks that follow.
Citigroup and Wells Fargo are set to report Q2 earnings on Friday morning, followed by Bank of America Merrill Lynch on Monday, Goldman Sachs on Tuesday, and Morgan Stanley on Wednesday. JPMorgan shares gained 2.4 percent in Thursday morning trading, to $64.67 – passing pre-Brexit levels for the first time.
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Ken Sweet covers banks and consumer financial issues for The Associated Press.
