UPDATE: JPMorgan Posts Upbeat Q2 Profit, Shares Gain
Shares of JPMorgan Chase & Co (NYSE: JPM) 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.
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