JPMorgan Outperforms Estimates
Despite it being Friday the 13th, Dimon had to be all smiles when he looked at JPMorgan Chase Co’s second quarter earnings report. The bank’s earnings of $2.29 per share topped consensus estimates of $2.22 EPS–a 26% growth in earning compares to a year ago.
In addition, it posted unexpected growth in its trading revenue, delivering $5.4 billion in revenue to exceed expectations by about 13%. Other notable highlights were in its investment revenue, which grew by $200 million and its loan portfolio drew a 4% increase year-over-year.
“Right now, there are a lot of things working in JPMorgan’s favor,” said Stephen Gandel of Bloomberg. “The economy is humming along, with GDP expected to have grown more than 3 percent in the second quarter. Unemployment is back down to 4 percent. There were the tax cuts. And yet, JPMorgan’s revenue in the latest quarter was up 8 percent, and is likely, given the yield curve, to slow from here. Dimon’s golden age of banking may already be starting to lose its luster.”
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