JPMorgan Chase reported second-quarter earnings and revenues that exceeded analysts’ expectations as the company freed up money it had set aside to cover loan losses.
Here’s how the bank did it:
Earnings: $ 3.78 per share, higher than Refinitiv’s estimate of $ 3.21 per share.
Revenue: $ 31.4 billion, higher than the $ 29.9 billion estimate.
One key factor is that after the industry set aside tens of billions of dollars in loan losses last year, banks were releasing reserves as borrowers held out better than expected.
This happened at JPMorgan, the largest US bank by assets, in the second quarter. The company reported a $ 2.3 billion gain from the release of $ 3 billion in loan loss provisions after a $ 734 million write-off. The bank was Issue of reserves of $ 5.2 billion in the first quarter.
“Consumer and wholesale balances remain exceptionally strong as the economic outlook continues to improve,” the CEO said. Jamie Dimon the release says. “In particular, net write-offs, down 53%, were better than expected, reflecting the growing health of our clients and clients.”
Trading revenues were expected to decline from last year, when there was frenzied activity following the Federal Reserve’s actions to support markets in the early stages of the coronavirus pandemic.
Fixed-income trading generated revenue of $ 4.1 billion, slightly less than the $ 4.16 billion estimate by analysts surveyed by FactSet. Stock trading revenues were $ 2.69 billion, higher than the $ 2.31 billion estimate. The cumulative figure was in line with Dimona’s. leadership last month “slightly north of $ 6 billion” in sales revenue.
After that, analysts can ask Daimon about the bank’s succession plans. named two top executives, Marianne Lake and Jennifer Piepshak, run the company’s vast consumer bank. These changes led to the promotion of Jeremy Barnum, head of International Studies, to the position of Chief Financial Officer, succeeding Piepsak; this is Barnum’s first quarter in which the firm’s income statements are published.
Dimona can also be asked about him acquisition strategy after the third purchase of a fintech startup since December. The bank agreed to buy ESG’s investment platform last month. OpenInvestReported by CNBC.
JPMorgan is up 24% this year, beating the 17% gain in the S&P 500.
This story is evolving. Please stay tuned.
Become a smarter investor with CNBC Pro…
Get a selection of promotions, analyst calls, exclusive interviews and access to CNBC TV.
Register to get started free trial today…