This is a big deal for bank employees, but it’s also a big deal for everyone else, because for the first time since the recovery began, it’s a sign that the economy is, maybe, actually starting to behave normally again.
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Receive JPMorgan Chase & Co News & Ratings Via Email – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for JPMorgan Chase & Co with MarketBeat.com’s FREE daily email newsletter. That’s despite the economic headaches from the United Kingdom vote to leave the European Union and market turmoil earlier in the year.
JPMorgan also suffered a 15% decline in investment banking revenue due to lower stock underwriting fees amid the slowdown in IPO activity. That’s down slightly from a profit of $5.78 billion in the same period a year earlier. That translated into 1.55 per share, 12 cents above expectations.
Commercial net revenue was $1.8 billion, an increase of 4%, reflecting higher net interest income from higher average loan balances and deposit spreads. Equity trading rose 1.5 percent to $1.6 billion.
In the short term, that could be good news for banks’ trading revenues, but the long term impacts are less rosy. JPM’s trading revenue was up 13% from a year earlier to $6.5 billion.
“The impact [of Brexit] on global growth and the USA economy is small”, CFO Marianne Lake said.
After the vote, JPMorgan said it was considering changes that could result in moving some of its 16,000 UK-based employees. Investors are closely watching US 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. Increased trading revenue for JPM, the largest US bank by assets, helped the second-quarter results.
The bank also appears to be opening up lending to a larger number of customers.
His words were well-supported by action – in the piece he pledged that over the next three years the bank will raise its USA minimum salary of US$10.15 an hour to between US$12 and US$16.50 an hour “depending on geographic and market factors”.
Although JPMorgan reported encouraging Q2 results on multiple fronts, Mr. Chubak has modestly constructive outlook on the business. Thursday’s advance was sparked by better-than-expected second-quarter results from J.P. Morgan Chase, which is viewed as a bellwether for the financial sector and the US economy.
Shares of JPMorgan rose 2.3% in pre-market trading to $64.60.
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Ken Sweet covers banks and consumer financial issues for The Associated Press.
