UPDATE: JPMorgan Posts Upbeat Q2 Profit, Shares Gain

Shares of JPMorgan Chase & Co

gained around 1.8% in pre-market trading after the company reported better-than-expected second-quarter earnings. JPMorgan's quarterly profit fell to $5.99 billion, or $1.46 per share, versus a year-ago profit of $6.5 billion, or $1.60 per share. Its revenue declined 2% to $25.35 billion. However, analysts were expecting a profit of $1.29 per share on revenue of $23.73 billion. The bank's mortgage originations dropped 66% to $16.8 billion, while markets and investor services revenue slipped 12% to $5.9 billion. Its fixed income revenue declined 15%, while equity markets revenue tumbled 10%. Credit card sales volume rose 12% to $118.0 billion, while merchant processing volume surged 13% to $209.0 billion. Consumer & Business Banking net revenue climbed 7% to $4.6 billion, while mortgage banking net revenue dropped to $2.3 billion. Card, Merchant Services & Auto net revenue fell 3% to $4.6 billion. Commercial Banking net revenue tumbled 2% to $1.7 billion, while asset management net revenue surged 8% to $3.0 billion. JPMorgan's return on tangible common equity was 14%, down from 17% in the earlier year. Its core loans rose 8% y/y. The bank also repurchased $1.5 billion of common equity in the quarter. The company's press release offered the following comment from Jamie Dimon, Chairman and Chief Executive Officer: “Despite continued industry-wide headwinds in Markets and Mortgage, the firm has continued to deliver strong underlying performance.” JPMorgan shares gained 1.83% to $57.32 in pre-market trading.