The largest US bank by assets JP Morgan Chase & Co. in the second quarter increased its net profit 2.6 times – to $ 11.948 billion, or $ 3.78 per share, compared with $ 4.687 billion, or $ 1.38 per share, for the same period last year.
Meanwhile, revenue fell 7% to $ 31.395 billion from $ 33.817 billion a year earlier, according to a press release from the bank. Analysts surveyed by FactSet, on average, predicted earnings of $ 3.18 per share on revenue of $ 29.97 billion.
The significant growth in net profit of JPMorgan was caused, among other things, by the dissolution of provisions for possible losses on bad debts.
In the past quarter, the bank freed up reserves in the amount of $ 3 billion, according to the report. The bank’s net interest income fell by 8% – to $ 12.9 billion (experts expected $ 13 billion).
Non-interest income decreased by 7% to $ 18.5 billion. Average return on equity (ROE) was 18%, compared to 23% in the first quarter and 7% in April-June last year.
Revenue of the retail division (CCB) of JPMorgan in the second quarter increased by 3% – to $ 12.76 billion (against the forecast of $ 12.42 billion).
At the same time, revenues in the field of mortgage lending fell by 20%, car loans and cards – by 1%.
In the field of consumer and small business lending, revenue increased by 15%. CCB’s net income was $ 5.634 billion against a net loss of $ 176 million a year earlier.
The revenue of the corporate investment bank (CIB) decreased by 19% – to $ 13.214 billion (experts estimated it at $ 12.19 billion).
In particular, income from operations with fixed income assets collapsed by 44% – to $ 4.1 billion ($ 4.16 billion was expected), while from operations with shares – increased by 13%, to $ 2.7 billion (with forecast of $ 2.31 billion).
CIB’s net profit fell 9% to $ 4.985 billion.
In asset management, JPMorgan generated $ 4.107 billion in revenue, up 20% from the second quarter of 2020.
JPMorgan shares declined in preliminary trading on Tuesday.
The bank’s market value has risen 24.3% since the beginning of this year, while the Dow Jones Industrial Average has added 14.3% over this period.
JPMorgan Chase was founded over 200 years ago and is one of the world leaders in the provision of investment banking and trust services.
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The volume of assets under the bank’s management exceeds $ 3 trillion. The state employs over 250 thousand people.