Analysts had been expecting earnings of $1.43 per share on $24.17 billion in revenue.
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JPMorgan’s shares rose $1.52, or 2.4 percent, to $64.65 in midday trading. Net revenue rose 3 percent to US$25.21 billion from US$24.53 billion. Today, the bank says there’s “somewhat more-stable market conditions in oil & gas, while the prior year reflected select downgrades”. Fixed income markets revenue jumped amid strong performance in rates, currencies and emerging markets on higher cash flows and improved performance of its credit and securitized products, JP Morgan said.
The DFAST test reported JPMorgan Chase’s actual common equity tier 1 capital ratio-a measure of the bank’s financial strength that compares its core equity capital and its total risk-weighted assets-to be 12 percent at the end of the fourth quarter in 2015. Earnings per share, however, grew 1 percent to $1.55 from $1.54 a year ago.
Wall Street’s biggest financials may post better results than expected this earnings season, as banks like JPMorgan Chase attempt to ramp up loans sales in the face of ultra-low interest rates, a well-known analyst told CNBC. One worry for investors is that trading activity, which had picked up in the second quarter after a dismal start to the year, will again subside given the rate environment and global economic and market uncertainty.
Bank stocks plummeted after the vote and yields on 10-year Treasury notes fell to a record, draining financial firms of interest income. JPMorgan, which lost about 10 per cent of its values in the two days after the June 23rd Brexit referendum, has since recovered most of that decline.
The biggest USA 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. That’s down slightly from a profit of $5.78 billion in the same period a year earlier. And don’t think that he’s doing this for his investment bankers… not at all.
JPMorgan Chase (JPM), the nation’s largest bank by assets, said Thursday its second quarter net income dipped 1.4% due to higher loan loss provision but loan growth and bank deposits fueled a 3% revenue gain.
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$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. Low rates make it harder for banks to earn a profit on the difference between what they loan and how much they pay depositors on interest.
