U.S. markets close in 6 hours 22 minutes

  • S&P 500

    4,378.99
    -5.64 (-0.13%)
     

  • Dow 30

    34,976.64
    -19.54 (-0.06%)
     

  • Nasdaq

    14,709.33
    -23.91 (-0.16%)
     

  • Russell 2000

    2,281.82
    +1.82 (+0.08%)
     

  • Crude Oil

    74.10
    0.00 (0.00%)
     

  • Gold

    1,810.20
    +4.30 (+0.24%)
     

  • Silver

    26.09
    -0.14 (-0.55%)
     

  • EUR/USD

    1.1813
    -0.0053 (-0.45%)
     

  • 10-Yr Bond

    1.3690
    +0.0060 (+0.44%)
     

  • GBP/USD

    1.3817
    -0.0067 (-0.48%)
     

  • USD/JPY

    110.3930
    +0.0450 (+0.04%)
     

  • BTC-USD

    32,539.69
    -926.92 (-2.77%)
     

  • CMC Crypto 200

    792.47
    -16.25 (-2.01%)
     

  • FTSE 100

    7,131.90
    +6.48 (+0.09%)
     

  • Nikkei 225

    28,718.24
    +149.22 (+0.52%)
     

JPMorgan earnings soar amid 'exceptionally strong' consumer balance sheets, credit release

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Julia La Roche
·Correspondent
·2 min read
JPMorgan earnings soar amid 'exceptionally strong' consumer balance sheets, credit release
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

JPMorgan Chase (JPM) kicked off the second quarter earnings season for bulge-bracket backs on Tuesday, reporting better-than-expected earnings results that were bolstered by a strong economy and the release of credit reserves.

Here are the key figures versus estimates, according to Bloomberg:

  • Adjusted earnings per share (EPS): $3.78 vs. $3.15 estimate

  • Excluding credit reserve releases: $3.03 per share

  • Revenue: $31.4 billion vs. $30.06 billion estimate

During the quarter, the largest U.S. bank by assets earned $11.9 billion in net income, up $7.3 billion from a year ago, driven by credit reserve releases of $3 billion compared to credit reserve builds of $8.9 billion a year ago. 

While not central to JPMorgan's operations or even recurring, CEO Jamie Dimon said the development reflected the underlying strength of the economy, and the health of consumers.

He noted that the consumer balance sheet "remains exceptionally strong," while the economic outlook "continues to improve." The CEO pointed out that net charge-offs were down 53%, which "were better than expected, reflecting the increasingly healthy condition of our customers and clients.” Dimon added that debit and credit card spending was up 45% from a year ago, and up 22% from the second quarter of 2019 pre-pandemic levels. 

Breaking the results down further, total markets revenue declined 30% to $6.8 billion in the quarter, with fixed income revenue falling 44%, but were offset by equity markets revenue climbing 13%. In recent weeks, Dimon suggested a "more normal" quarter for trading with revenue from trading fixed income and equities "a little bit north of $6 billion." 

Banking revenue rose 1% to $5.1 billion, with investment banking revenue also up 1% at $3.4 billion in the quarter on higher fees. 

Shares of JPMorgan were trading down 1.52% near $155.60. 

This content is not available due to your privacy preferences.
Update your settings here to see it.

Julia La Roche is a correspondent for Yahoo Finance. Follow her on Twitter.

Recommended Stories

  • Goldman Sachs posts Q2 earnings blowout, powered by investment banking

    Goldman Sachs' results were boosted by a strong showing in investment banking.

  • PepsiCo blows away earnings forecasts, raises 2021 outlook

    PepsiCo crushes it financially in the second quarter. Here's what you need to know from the beverage and snack giant's latest results.

  • The market has an earnings problem: Morning Brief

    Top news and what to watch in the markets on Tuesday, July 13, 2021.

  • JPMorgan, Goldman Sachs Earnings Beat But Trading Slows Sharply

    JPMorgan earnings beat views, as released loan loss reserves offset weak trading. Goldman easily topped estimates.

  • U.S. small business optimism rises despite labor shortage, inflation worries - NFIB

    Confidence among small businesses in the United States improved slightly in June after declining in May, despite owners worrying about a labor shortage and inflation, according to a survey released on Tuesday. The National Federation of Independent Business (NFIB) Optimism Index rose 2.9 points to a reading of 102.5 in June. “Small businesses' optimism is rising as the economy opens up, yet a record number of employers continue to report that there are few or no qualified applicants for open positions," NFIB Chief Economist Bill Dunkelberg said in a statement.

  • Investors should expect bank earnings to increase by 'over 100%': Analyst

    RBC Capital Markets Analyst Gerard Cassidy joins Yahoo Finance Live to discuss what to expect from bank earnings this week.

  • Wells Fargo Q2 Earnings to Rise Over 245%; Target Price $44

    The fourth-largest U.S. lender, Wells Fargo, is expected to report a profit in the second quarter after posting its first loss last year since the global financial crisis of 2008.

  • U.S. Consumer Prices Surged in June, Topping All Estimates

    (Bloomberg) -- Prices paid by U.S. consumers surged in June by the most since 2008, topping all forecasts and showing higher costs associated with the economy’s reopening continue to fuel inflationary pressures.The consumer price index jumped 0.9% in June and 5.4% from the same month last year, according to Labor Department data released Tuesday. Excluding the volatile food and energy components, the so-called core CPI also rose 0.9%. The core increased 4.5% from June 2020, the largest advance s

  • Citi Debuts No-Fee Stock Trading to Compete With JPMorgan, Robinhood

    (Bloomberg) -- Citigroup Inc. will let retail customers bet on stocks without paying fees as the bank tries to expand its wealth business in the face of fierce competition from Silicon Valley ventures, discount brokerages and big-banking peers.The Wall Street giant will initially make the new offering -- Citi Self Invest -- available to checking account holders before later marketing it to more people, said David Poole, who heads the U.S. consumer wealth management business. The zero-fee deal ap

  • Bank Stocks Retreat From Rally on Doubt Profit Boom to Last

    (Bloomberg) -- After soaring during the first half of the year, U.S. bank stocks have been under pressure ahead of second-quarter earnings reports on speculation that the results won’t be strong enough to justify the heady run up.The S&P 500 Banks Index, which has been one of the best performing segments this year, has slumped more than 6% over the past five weeks even as the broader market advanced.The pullback began in early June after JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon s

  • Earnings season kicks off, CPI and retail sales: What to know this week

    Investors are gearing up for a busy week, with the start of second-quarter earnings season and an onslaught of new economic data on deck.

  • JPMorgan’s Earnings Topped Expectations. But Boom Time for Trading Is Over.

    While the bank delivered solid results, easily topping Wall Street estimates, JPMorgan (ticker: JPM) saw a sharp drop off in fixed-income trading from the year-ago quarter when the economic effects of the coronavirus pandemic roiled markets, allowing the big banks to benefit from a surge in trading. JPMorgan earned $3.78 per share in the second quarter on $31.4 billion in revenue, well ahead of the earnings of $3.20 per share on $29.97 billion in revenue expected by analysts surveyed by FactSet. “JPMorgan Chase delivered solid performance across our businesses as we generated over $30 billion in revenue while continuing to make significant investments in technology, people and market expansion,” Jamie Dimon, chief executive of the bank, said.

  • At least 8 killed in hotel collapse in China

    Authorities say at least eight people have died and nine remained missing in a hotel collapse in Suzhou city in eastern China.

  • China’s Top Brokers Ask Bankers to Fly Coach and Share Hotel Rooms

    (Bloomberg) -- China’s two largest investment banks are making broad cuts to travel budgets that will impact junior bankers as well as senior directors as they seek to reign in costs and boost profitability.Starting this month, CSC Financial Co. managing directors’ domestic travel will be downgraded to economy flights and second class or hard-berth train seats, according to a memo seen by Bloomberg. Larger rival Citic Securities Co. also asked managing directors to fly coach, according to a sepa

  • My wife and I have $1.8M saved and earn $400K. I want to pay off our 20-year mortgage before we retire. She says no

    ‘I worry that stretching that house payment into our first five years of retirement will eat a huge chunk out of the retirement funds.’

  • Just 3 Stocks Power 75% Of Warren Buffett's Profit

    Warren Buffett stocks are famous for tight focus. And this year, the famed investor's concentrated play on top S&P 500 stocks is paying off.

  • Buy These 3 Stocks Before They Jump Around 40%, Says JPMorgan

    Markets have been heading up, with year-to-date gains in the S&P and NASDAQ at 18% and 15% respectively. So far, the upward trend is showing signs of staying power, and JPMorgan global market strategist, Jordan Jackson, sees a strong foundation in the offing for further growth. Earnings, in Jackson’s view, will be the key driver going forward in this second half: “What’s going to drive the market higher? I think going forward it is going to be earnings... Earnings are certainly expected to surpr

  • Is Nio Stock A Buy After Q2 Sales More Than Double?

    Nio stock is on the mend after a sharp sell-off. The China EV startup more than doubled Q2 sales year over year, despite the chip shortage.

  • JPMorgan's 2Q profits more than double, beating expectations

    JPMorgan Chase said its second quarter profits more than doubled from a year ago — a reflection of the improving global economy and fewer bad loans on its balance sheet. JPMorgan is the first of the big Wall Street banks to report their results this week, and expectations are high. Banks have tens of billions of dollars in loans they set aside during the pandemic that they are now moving back onto the “good” side of their balance sheets.

  • Crypto platform Binance suspends GBP withdrawals

    Cryptocurrency platform has suspended the withdrawal of British pounds and euros, as payments provider Clear Junction stopped facilitating them.