Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co, at an Economic Club of Chicago luncheon on November 22, 2017 in Chicago, Illinois.
Scott Olson | Getty Images News | Getty Images
JPMorgan Chase reported earnings and revenue for the second quarter that exceeded analysts’ expectations as the company released funds for credit losses.
This is how the bank did it:
Earnings: $ 3.78 per share, beating the estimate of $ 3.21 per share per refinitive.
Revenue: $ 31.4 billion, beating the estimate of $ 29.9 billion.
A key factor is that after the industry allocated tens of billions of dollars for loan defaults last year, banks released reserves as borrowers held up better than expected.
It did so in the second quarter at JPMorgan, the largest US bank by assets. The company posted $ 2.3 billion in earnings from releasing $ 3 billion of loan loss reserves after $ 734 million in write-downs. The bank had a reserve release of $ 5.2 billion in the first quarter.
Trade revenues are expected to decline from the same period last year, which saw frenzied activity following the Federal Reserve’s actions to support markets in the early stages of the coronavirus pandemic.
Last month, JPMorgan CEO Jamie Dimon said that while trading revenues will decline year over year, investment banking revenues are up 20% due to higher merger fees.
Analysts may ask Dimon about the bank’s succession planning after she appointed two executives, Marianne Lake and Jennifer Piepszak, to lead the company’s sprawling consumer bank. The changes resulted in the promotion of Global Research Director Jeremy Barnum to CFO to succeed Piepszak; This is Barnum’s first quarter covering the company’s earnings release.
After buying a fintech start-up for the third time since December, Dimon could also be asked about his acquisition strategy. Last month, the bank agreed to buy the ESG investment platform OpenInvest, CNBC first reported.
JPMorgan’s stocks are up 24% so far this year, outperforming the 17% increase in the S&P 500 Index.
This story evolves. Please check again for updates.
Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to get started Try it for free today.
