JPMorgan Chase & Co the largest bank by assets in the USA said its profit for the second quarter dropped 1.4%, but beat estimates by analysts as its revenue from fixed income trading and growth in loans increased.
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Dimon also said the company will spend more than $200 million this year to train thousands of entry-level employees in consumer banking, allowing it to train 30% more workers than it did last year.
On the company’s financial health, JPMorgan Chase & Co. reported $1.55 EPS for the quarter, beating the analyst consensus estimate by $ 0.12 according to the earnings call on Jul 14, 2016.
JPMorgan was among the first major banks to post second-quarter results, reporting earnings on Thursday that easily beat expectations.
GAAP revenues increased 2.5% from past year to $24.4 billion, also more than the Capital IQ Consensus of $23.84 billion.
The firm reported adjusted earnings per share of $1.46 on revenue of $25.20 billion. 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.
Noninterest expense was $13.6 billion, down 6%, driven by lower legal expense and continued expense reduction initiatives. Wall Street analysts expected JPMorgan Chase to announce a share repurchase plan of around $8 billion.
The bank’s corporate and investment bank recorded $235 million in second-quarter credit-loss provisions, versus $50 million a year earlier, with an unnamed energy company being the primary cause. Markets revenue, which includes bond and stock trading, rose 23 percent.
Profit from consumer and community banking, run by Gordon Smith, rose 4.9 percent to $2.66 billion on strength in mortgages.
The nation’s largest bank by assets and revenue earned $5.67 billion after payments to preferred shareholders. JP Morgan revealed that the core loans surged 16% when compared to the same quarter past year, with “strong underlying performance with record consumer deposits, credit-card sales volume, merchant processing volume and broad core loan growth”. Analysts were looking for revenues of $24.16 billion for the quarter.
JPMorgan suffered a 15% decline in investment banking revenue due to lower stock underwriting fees amid the slowdown in IPO activity.
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Wells Fargo & Co and Citigroup Inc, the third and fourth-biggest US banks, report on Friday. The group saw profits fall 12 percent on a year-over-year basis in the first quarter.
