In a conference call to discuss second quarter earnings, JPMorgan Chase Co CEO Jamie Dimon would not yield to inverted Treasury yield curves and dismissed the notion that the economy’s current rate of speed would be deterred by road obstacles, saying, “If you’re looking for potholes, there are not a lot of things out there.”
Dimon’s comments are pointed at the notion that the narrowing spread between the 2- and 10-year Treasury yield curve, which could lead to an inversion are typical signs that portend to a recession. In addition, Dimon parried any presumptions that rising interest rates and trade wars would also stunt the current economic growth.
Related: Jamie Dimon’s Shareholder Letter Offers Insight to Growth
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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