JPMorgan Chase & Co. (NYSE:JPM) reported its second quarter earnings before opening bell this morning, posting results that were ahead of consensus estimates. The company’s net income for the second quarter of the year jumped to $1.60 per share or $6.5 billion.
Analysts were expecting the company to report earnings of $1.42 per share with an adjustment for a one-time item. Last year the bank reported $1.21 per share in earnings for the same quarter. Revenue for the second quarter was reported to be $26 billion, compared to consensus estimates of $25 billion for the quarter. In the same quarter a year ago, JPMorgan Chase & Co. (NYSE:JPM)’s revenue was $22.9 billion.
JPMorgan Reports Strong Performance Across Divisions
The bank reported a 10 percent increase in consumer and community banking deposits and a $49 billion or 12 percent increase in mortgage originations during the quarter. JPMorgan Chase & Co. (NYSE:JPM)’s credit card sales volume hit a new record of $105.2 billion, a 10 percent increase. Automobile loan originations also rose 17 percent during the quarter.
Signs Of An Improving Economy
The bank’s strong earnings report means more than just good things for the bank. It also means the economy may be strengthening as well. JPMorgan Chase & Co. (NYSE:JPM) Chairman and CEO Jamie Dimon noted some important changes they made in light of the improving economy.
“Net charge-offs remain near historical lows in our Credit Card business, have dropped to less than half of what they were a year ago for our Real Estate Portfolios and remained very low in our wholesale portfolios,” said Dimon in a statement. “In light of these trends, we reduced the allowance for loan losses in Consumer & Community Banking in the second quarter by a total of $1.5 billion.
Consumers, Businesses Remain Cautious
According to Dimon, consumers and businesses are still proceeding cautiously as loan growth throughout the banking industry was still soft during the second quarter. Nonetheless, he said they still see “broad-based signs” that the economy in the U.S. is improving and hopes that as jobs are added and consumer confidence increases, the economy in the U.S. will strengthen.
JPMorgan Increases Dividend
JPMorgan Chase & Co. (NYSE:JPM) reported an increase in its common stock dividend as well. It raised the dividend from 30 cents per share to 38 cents per share, returning it to its highest level.