Categories AlphaGraphs, Earnings, Finance, Markets

JPMorgan Chase beats in Q2 on tax benefit

JPMorgan Chase & Co (NYSE: JPM) reported higher earnings on modest growth in revenues during the second quarter, despite headwinds associated with low-interest rates. Net income rose to $2.82 per share from $2.29 per share a year ago, helped by income tax benefits of $768 million related to the resolution of certain tax audits.

This surpassed the Street projection of $2.50 per share.

Revenues improved 4% to $29.6 billion, riding on high consumer confidence and strong loan growth. Analysts had projected Q2 revenues of just $28.9 billion.

JPMorgan posted Q2 2019 results with revenue increasing 4% and profit growing 16%

Helped by the popularity of its Sapphire card among millennials, credit card sales volume increased by 11% in Q2.

CEO Jamie Dimon said, “Double-digit growth in credit card sales and merchant processing volumes reflected healthy consumer spending and drove 8% growth in credit card loans, while mortgage and auto originations showed solid improvement, and we continued to attract new deposits, up 3%.

READ: Earnings preview: Wall St expects a lackluster Q2 from Bank of America

The Consumer and Community Banking business continued its strong run and recorded 11% revenue growth despite weakness in home lending.

Meanwhile, the Corporate and Investment Banking division fell 3% as dismal trading volumes continued, driven by a slowing economy and geopolitical tensions.

READ: Citigroup beats market expectations on Q2 results

Like its rival Citigroup (NYSE: C), JPMorgan benefited from the IPO of Tradeweb, excluding which, markets revenues would have been down 6%. Fixed Income markets revenue was down 3%, while Equity Markets revenue plunged 12% driven by lower client activity.

JPM shares fell 1.4% during pre-market trading on Tuesday. The stock has gained 15.7% in the year-to-date period and 7.4% in the trailing 12 months.

Competitors Wells Fargo (NYSE: WFC) and Goldman Sachs (NYSE: GS) are also reporting financial results today, while Bank of America (NYSE: BAC) will report on Wednesday.   

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top