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JPMorgan Chase & Co. 2Q 2017 Earnings, Shares Down After Results

The JPMorgan Chase 2Q 2017 earnings report was released before opening bell this morning. The bank posted $1.82 per share in earnings on $25.5 billion in reported revenue, compared to $1.55 per share and $24.4 billion in last year’s second quarter. Managed revenue amounted to $26.4 billion, up 8% from $25.2 billion in last year’s second quarter. The consensus estimate stood at $1.59 per share and $24.97 billion in revenue.

JPMorgan Chase 2Q 2017 earnings
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JPMorgan Chase 2Q 2017 earnings

JPMorgan’s net interest income grew 8% year over year to $12.5 billion, coming up a bit shy of the consensus at $12.8 billion. Average core loans grew 8% year over year and 2% sequentially. The bank said that higher rates and loan growth drove the increase in managed and net revenues, although markets net interest income fell, partially offsetting those gains.

“We continued to post very solid results against a stable-to-improving global economic backdrop,” JPMorgan Chase Chairman and CEO Jamie Dimon said in a statement. “The U.S. consumer remains healthy, evidenced in our strong underlying performance in Consumer & Community Banking. Loans and deposits continue to grow strongly, and card sales and merchant processing volumes were up double digits, reflecting our consistent investment in the business.”

Provision for credit losses ticked lower to $1.2 billion from $1.4 billion last year. The consensus stood at $1.34 billion. JPMorgan’s Consumer and Business Banking revenue jumped 13% year over year to $5.2 billion, while its Mortgage Banking net revenue tumbled 26% to $1.4 billion. Card, Commerce Solutions & Auto revenue rose to $4.8 billion from $4.5 billion a year ago.

Markets revenue declines

Corporate & Investment Bank revenue ticked 3% lower year over year to $8.9 billion. Banking revenue rose 17% to $3.1 billion, while Markets and Investor services revenue fell 11% year over year to $5.8 billion. Fixed income revenue tumbled 19% and equity market revenue fell 1%. Commercial Banking revenue grew 15% to $2.1 billion, while Asset & Wealth Management revenue rose 9% to $3.2 billion. Corporate revenues rose to $804 million.

Following the JPMorgan Chase 2Q 2017 earnings release, the bank’s stock initially rose, but it quickly reversed course as the results settled and then declined by as much as 0.7% to $92.45 in premarket trades this morning.