“JPMorgan’s loan portfolio – setting aside allowances for bad loans – grew to $858.6 billion, the largest in the bank’s history”. Analysts will be looking for an improvement on last quarter’s numbers where the firm reported earnings of $1.55 per share for the period ending on 2016-06-30.
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JPMorgan’s stock rose 2.5 percent before the stock market opened Thursday.
Jamie Dimon’s bank on Thursday beat expectations for second quarter results, thanks in part to a boost in trading – and actually added about 2,600 jobs while the rest of Wall Street is pulling back. That included a $200 million increase in reserves to cushion against losses, mostly driven by a single oil and gas company the bank declined to name. The revenue figure included $3.96 billion from fixed-income trading, a 35 percent increase, beating the $3.57 billion estimate of analysts. Net interest income increased by 4.5 percent year-on-year.
JPMorgan is the first of the big banks to announce its quarterly financial results, and its signs of growth appeared to please investors. There are now 1.7 million people working in the retail banking, and bank tellers’ average wages are $12.44 an hour. The delay would extend a post-financial-crisis era of low rates that have forced banks to rely on expense cuts to cope with stagnant revenue.
At the start of the year, it was widely expected there would be two USA rate hikes this year. “I’m still expecting earnings to be down year over year”. Analysts also projected revenue of about $24.16 billion for the bank.
Net income at JP Morgan Chase has slumped slightly year-on-year, the banking giant reported today as USA banking earnings season got off to a start. Markets revenue, which includes bond and stock trading, rose 23 percent. Increased trading revenue for JPM, the largest USA bank by assets, helped the second-quarter results. After the stress tests results, the bank said it would keep its dividends constant at $0.48 per share but raised share repurchases to $10.6 billion. The figure was in line with analysts’ $1.49 billion estimate.
The announcement comes as banks are shedding employees, because of lower profits provoked by low interest rates and underperforming growth.
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Financials had been the worst performing of the 10 major S&P sector groups this year, down almost 6%, as they were hit by reduced expectations for a USA interest rate hike by the Federal Reserve and uncertainty in the wake of the vote by Britain to leave the European Union, or “Brexit”.
