“JPMorgan’s loan portfolio – setting aside allowances for bad loans – grew to $858.6 billion, the largest in the bank’s history”.
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JPMorgan’s shares rose $1.52, or 2.4 percent, to $64.65 in midday trading. Lower global interest rates, in turn, negatively affect bank bottom lines.
JP Morgan, the biggest U.S. bank in terms of assets, confirmed that the second quarter saw year-over-year declines in revenue and profits, while beating analysts’ expectations.
In the coming years, however, bank branches could be overhauled due to the rise of financial tech startups, which could move numerous services provided at a local branch to one’s smartphone. But, after that, JPMorgan corporate and investment bank CEO Daniel Pinto suggested job cuts on Wall Street were nearing an “end of the cycle of contraction”.
JPMorgan Chase said Thursday it is too soon to know if it will shift its European headquarters out from London after Britain’s break with the EU, as it reported solid second-quarter earnings.
Costs decreased 5.9% to $13.64 billion from $14.5 billion a year earlier, an effort the bank continues to drill down on, though Ms. Lake warned in mid-June that they were expected to be flat. JP Morgan revealed that the core loans surged 16% when compared to the same quarter a year ago, with “strong underlying performance with record consumer deposits, credit-card sales volume, merchant processing volume and broad core loan growth”. The unit’s total revenue rose 4% to $11.5 billion. “I’m still expecting earnings to be down year over year”.
JPMorgan also generated a slight increase in revenue to $25.2 billion, benefiting from a trading rebound. That compares with a profit of $5.78 billion a year earlier. Analyst had a consensus of $1.43.
Low interest rates buoyed its consumer and community banking unit, with home-buyers filling out more applications for mortgages.
J.P. Morgan Chase & Co. said its second-quarter profit fell amid a weak performance within its investment-banking division, while expenses declined. The EITC is a tax refund for low-income workers with children. The move was spurred by higher loss rates on new credit cards as well as higher charge-offs in the bank’s energy loan portfolio.
In a different news, on April 14, 2016, Marianne Lake (Chief Financial Officer) sold 13,684 shares at $62.41 per share price.
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Citigroup Inc. and Wells Fargo & Co. are scheduled to report results Friday, while Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley are due next week.
