Quick overview

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JPMorgan Chase (JPM) reported a strong second-quarter performance, with revenue and earnings surpassing expectations.

Trading, investment banking, and consumer lending all showed resilience. Shares face mild downward pressure in early trading despite the positive results as investors choose to “sell the news” after a significant rally leading up to the earnings release.

Even a beat-and-raise quarter couldn’t match the high standards set by the stock’s robust rally in recent weeks.

Management maintained a cautiously optimistic outlook, highlighting ongoing risks related to asset valuations, fiscal deficits, and geopolitical tensions while recognizing economic resilience.

The bank beat consensus estimates of $4.47 with an adjusted EPS of $4.96. Net income reached $15 billion, and total managed revenue was $45 billion, slightly above Wall Street forecasts but down 10% compared to the previous year.

The managed overhead ratio was 52%, the return on equity (ROE) was 18%, and the return on tangible common equity (ROTCE) was 21%. CEO Jamie Dimon acknowledged U.S. economic resilience but warned about persistent threats such as high asset prices, geopolitical tensions, and tariffs.

Net interest income (NII) totaled $23.3 billion, up 2% year -over -year. NII excluding markets was $22.8 billion, dipping 1%.

Increased wholesale deposit and revolving card balances offset the decline caused by deposit margin compression from lower rates. Average deposits grew 6% YoY, while average loans increased 5% YoY and 3% QoQ. Non-interest income from markets was $8.9 billion, a 15% increase year over year.

Strength in currency, interest rates, and commodities contributed to a 14% rise in Fixed Income Markets revenue to $5.7 billion. Gains in derivatives drove a 15% increase in equity markets revenue to $3.02 billion. Debt underwriting and advisory services led to a 7% YoY and 12% QoQ rise in investment banking fees, totaling $2.5 billion.