The biggest US bank by assets said its profit slipped 1 percent versus the same period a year earlier, as it set aside more money to meet future loan losses. Stock-trading revenue edged up 1.5% to $1.6 billion. Excluding certain items, earnings were $1.46 a share. Today, the bank says there’s “somewhat more-stable market conditions in oil & gas, while the prior year reflected select downgrades”. The income for the consumer & community banking segment in Q2 was $2.7 billion, an increase of 5 percent over-the-year.
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“Many had suspected that continued low interest rates, and the uncertainty around Brexit would translate into lackluster sales for JPMorgan and other banks in the quarter”, Fortune said.
JPMorgan Chase & Co JPM.N reported a marginally lower second-quarter profit on Thursday but still beat subdued analyst expectations, helped by loan growth and a tight control on operating expenses. According to the latest Fortune list of most profitable companies, JPMorgan Chase is the second most profitable USA company behind Apple. Wal-Mart (WMT) said it would give a raise to more than 1.2 million store employees earlier this year.
Consumer bank deposits rose 10% from a year ago to a record high.
JPMorgan, which took losses of close to 10% over a period of two days following the referendum vote on June 23, has recovered since that time the majority of its loss. Non-interest expenses decreased 5.9 percent to $13.64 billion from $14.5 billion a year earlier, thanks to cost cutting and lower legal bills.
Net interest income was $11.7 billion, 6 percent higher than previous year primarily driven by loan growth and the impact of higher rates, partially offset by lower investment securities balances. The Company is engaged in investment banking financial services for consumers and small businesses commercial banking financial transaction processing and asset management.
$4.4 billion was returned to shareholders in the second quarter through $2.6 billion in net purchases and a common dividend of $0.48 per share. Analysts were looking for revenues of $24.16 billion for the quarter.
Investors are closely watching USA bank earnings to see if their performance in the second quarter avoided pain from turbulence in the European Union and other factors that have hampered Wall Street banks in 2016. Analysts estimate the industry will post its fourth-straight profit decline in the second quarter, according to data compiled by Bloomberg.
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