š¦ JPMorgan PostsĀ Record Revenues
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JPMorgan PostsĀ Record Revenues
JPMorganĀ reported record revenue for Q2 with $4.69 billion in profit.
What Happened?Ā JPMorgan Chase posted aĀ record Q2 revenueĀ of $33.8 billion amidst highly volatile market conditions. The bank earned $4.69 billion in profits in the quarter under the astute leadership of CEO Jamie Dimon.
JPMorgan is among the most prominent retail banks in the US, with a wide-spread network of branches that has fueled most of the lenderās dominance in the past decade. The Covid-19 pandemic exposed this division to loan defaults worth billions of dollars across auto lines, mortgages, and credit cards.
However, JPMorgan also is the worldās largest Wall Street bank in terms of revenue, a segment it focused on in the years after the ā08 crisis. This business has helped the company to leverage opportunities that arose because of the pandemic. Moreover, the steps taken by the Federal Reserve to support the credit markets amidst growing uncertainty and volatility have created an ideal environment for trading as well as advising on equity and debt markets.
JPMorganās investment and corporate banking segment posted a record $5.5 billion profit for the Q2,Ā helpingĀ in squaring losses in two of its four main businesses ā commercial and consumer banking.Ā
The firm also reported record revenue of $9.7 billion from its markets division, mainly driven by strong fixed-income trading. Bond traders posted a 120% increase in revenue from the past year, reaching $7.3 billion. Equities trading had revenue of $2.4 billion, beating the estimated $2.07 billion. The revenue of investment banking also climbed up by 91% to $3.4 billion.
Meanwhile, the retail banking division posted $176 million in losses, and the commercial banking segment had a loss of $691 million for the quarter.
Market Reaction:Ā JPMorgan earned $1.38 per share during the second quarter, above estimates for $1.26 a share. The stock price closed up 0.6% at $98.21 yesterday and is up another 2% pre-market.
JPMorgan Chase & Co. Snapshot
JPM $98.21 +0.56Ā (0.57%)
Analyst Ratings (26 Analysts) BUY 56%Ā HOLD 40%Ā Ā SELL 4%
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Later TodayĀ š
6.00Ā pm IST:Ā Empire State Index
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Before MarketĀ Open: Goldman Sachs Company EarningsĀ
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