- JPMorgan beat estimates once again in the second quarter, with earnings per share of $3.78.
- The bank received a $2.3 billion boost by reclaiming money that had been set aside to cover bad loans.
- JPMorgan boss Jamie Dimon said customers and clients were faring well as the economy reopened.
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JPMorgan again beat expectations with its second-quarter earnings, as the banking giant benefited from the release of cash set aside to cover loan losses and a surge in fees from mergers and acquisitions.
The lender’s revenue came in at $31.4 billion, it earnings showed on Tuesday. That was above the $29.9 billion analysts had been expecting but down from $33.8 billion in the same quarter a year earlier.
Net income stood at $11.9 billion in the second quarter, boosted by the release of $3 billion that had been put aside to cover bad loans, which added $2.3 billion to the bottom line after charge-offs. Net income was up 155% from $4.7 billion a year earlier.
Earnings per share came in at $3.78, above expectations of $3.21 and up 174% from the same quarter in 2020.
Here are the key numbers:
- Earnings per share: $3.78 vs. $3.21 expected.
- Revenue: $31.4 billion vs. $29.9 billion expected.
“JPMorgan Chase delivered solid performance across our businesses,” said Chairman and CEO Jamie Dimon.
“This quarter we once again benefited from a significant reserve release as the environment continues to improve… Consumer and wholesale balance sheets remain exceptionally strong.”
The Wall Street lender, the biggest in the US by assets, is seen as a bellwether company whose earnings give a sense of the health of the economy. Its results on Tuesday showed how banks are benefitting from rapid economic growth which has made much of the money they set aside in 2020 to cover bad coronavirus loans redundant.
JPMorgan’s earnings also showed that its investment banking arm fared well in the second quarter despite quieter markets. Investment banking fees rose 25% year on year to a record high of $3.6 billion, largely driven by the boom in mergers and acquisitions.
The bank’s stock was down 0.63% in pre-market trading after the earnings were released, at $157.00. It has risen more than 20% in 2021 as so-called cyclical stocks have benefited from a lifting of coronavirus restrictions and strong economic outlook.