JPMorgan Chase Tops Expectations With Second-Quarter Results

JPMorgan Chase (JPM) reported second-quarter results that came in ahead of Wall Street’s expectations, with its chief executive offering upbeat comments about US consumers even as geopolitical uncertainty hindered the markets segment and the bank lowered its view for full-year net interest income.

Earnings increased to $2.82 a share from $2.65 in the same period of 2018, ahead of the consensus on Capital IQ for $2.42 a share. Net revenue on a reported basis rose to $28.8 billion from $27.8 billion a year earlier, also beating the Street’s projection for $28.5 billion.

Revenue in consumer and community banking rose 11% to $13.8 billion and fell 3% to $9.6 billion in the corporate and investment bank, including a decrease to $6.39 billion from $6.47 billion in markets and securities services revenue.

“We continue to see positive momentum with the US consumer — healthy confidence levels, solid job creation and rising wages — which are reflected in our consumer and community banking results,” said Jamie Dimon, the company’s chief executive. “In the corporate and investment bank, markets performance was relatively steady on slight lower client volume, probably due to slightly higher global macroeconomic and geopolitical uncertainties.”

Commercial banking revenue fell 5% to $2.2 billion “predominantly driven by lower investment banking revenue, compared to a strong prior year, and lower net interest income on lower deposit balances.”