JPMorgan released its second quarter earnings report before opening bell this morning, posting earnings of $1.54 per share on $24.53 billion in revenue. Analysts had been expecting earnings of $1.44 per share and $24.4 billion in revenue. In the same quarter last year, JPMorgan reported earnings of $1.46 per share and $25.34 billion in revenue.
Key metrics from JPMorgan’s earnings report
Tangible book value per share increased 7% from last year to $46.13, while the Basel III Common Equity Tier 1 Ratio was 11%. The loans to deposits ratio increased 5% sequentially to 61%, while core loans increased 12% year over year and 5% sequentially.
The bank extended $115 billion worth of credit to consumers, $11 billion to small businesses and $314 billion for corporations. JPMorgan also raised $556 billion in capital for clients and $35 billion in credit and capital for government agencies and nonprofit entities.
Average consumer and business banking deposits increased 9%, and JPMorgan reported a new record in client investment assets, which increased 8% in the quarter. Credit card sales volume increased 7%, while merchant processing volume increased 12%. Average loan balances increased 11% compared to last year, while gross investment banking revenue with commercial banking clients increased 22%.
JPMorgan’s earnings by segment
JPMorgan’s Consumer and Business Banking segment recorded net income of $831 million, an 8% decline, and net revenue of $4.5 billion, a 3% decline from last year. Net income from the Mortgage Banking unit declined 20% to $584 million, while net revenue fell 21% to $1.8 billion. The bank’s Card, Commerce Solutions and Auto division saw a 30% increase in net income, which rose to $1.1 billion. Net revenue for the segment increased 3% to $4.7 billion.
The Corporate and Investment Bank segment recorded a 10% increase in net income to $2.3 billion but a 6% decline in net revenue to $8.7 billion. The firm’s Commercial Banking division saw net income fall 22% to $525 million. The division’s net revenue remained flat year over year at $1.7 billion. Asset Management saw a decline of 21% in net income to $451 million and a 6% increase in net revenue to $3.2 billion.
The Corporate division saw net income surge from $107 million last year to $440 million this year. The segment’s net revenue was a loss of $121 million, which was better than last year’s loss of $159 million.
As of this writing, shares of JPMorgan Chase were up 0.51% at $68.40 per share.