JPMorgan Chase & Co. (NYSE:JPM) released its second quarter earnings report before opening bell this morning, posting earnings of $1.55 per share on $25.21 billion in revenue. Analysts had been expecting earnings of $1.43 per share on $24.17 billion in revenue. In the year-ago quarter, the bank posted earnings of $1.54 per share on $24.08 billion in revenue.
JPMorgan Chase’s segment revenues rise
JPMorgan Chase & Co. (NYSE:JPM) said corporate and investment banking revenue climbed from $8.72 billion in the year-ago quarter to $9.17 billion this year. Consumer and community banking revenues climbed to $11.45 billion from last year’s $11.01 billion. Credit card sales volumes climbed 8%, while merchant processing volumes increased 13% year over year. Average core loans increased 16% year over year firm-wide. Gross investment banking revenue was $595 million.
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Net income declined from $6.29 billion in the year-ago quarter to $6.2 billion this year as the bank increased its provisions for loan losses. Provision for credit losses increased from $935 million to $1.4 billion on the back of the reserve increases versus releases in the year-ago quarter and greater net-charge-offs. Higher loss rates in newer Card vintages and growth in Card and Auto partially offset releases in Mortgage Banking and Student loans. Oil & Gas and Metals & Mining drive higher net charge-offs in Wholesale.
Chairman and CEO Jamie Dimon said JPMorgan kept performing well in all of its major businesses with mortgage and commercial real estate loan growth coming in especially strong.
“Outside of energy, both wholesale and consumer credit quality remained very good,” he said in a statement. “And throughout the recent uncertainty and turbulence in the markets, we continued to be there for our clients – solid and steadfast to meet their needs, execute their transactions and provide liquidity.”
JPMorgan’s book value rises
JPMorgan Chase & Co. (NYSE:JPM)’s tangible book value per share rose 9% to $50.21. Its Basel III Common Equity Tier 1 capital level was $179 billion with a ratio of 11.9%. The Common Equity Tier 1 ratio was 11.9% as of the end of the second quarter.
Shares of JPMorgan Chase & Co. (NYSE:JPM) surged 2.52% to $64.75 in premarket trades this morning.