JPMorgan Chase has reported a net income of $9.6bn (£7.8bn), or $2.82 (£2.27) per share, for the second quarter of 2019, a 16% increase compared to $8.3bn (£6.7bn), or $2.29 (£1.85) per share, for the same quarter in the previous year.
Image: A Chase Bank branch owned by JPMorgan Chase. Photo: courtesy of Ed!/Wikipedia.org.
In the first quarter of 2019, JPMorgan Chase reported a profit of $9.18bn (£7.4bn), or $2.65 (£2.14) earnings per share.
Net revenue for the banking giant on a reported basis for the second quarter is $28.8bn (£23.21bn), compared to $27.8bn (£22.4bn) in the corresponding period last year.
In the consumer and community banking (CCB) business, the bank reported $4.2bn (£3.36bn) for the second quarter of 2019, an increase of 22% compared to $3.4bn (£2.75bn) in the same quarter in 2018.
Net revenue of the CCB unit moved up by 11% to $13.8bn (£11.1bn), owing largely to higher net interest income resulting from higher deposit margins and balance growth.
JPMorgan Chase’s corporate and investment bank (CIB) business reported a net income of $2.9bn (£2.37bn) for the second quarter, compared to $3.2bn (£2.58bn) for the same period of 2018.
Banking revenue of the unit dropped 6% to $3.2bn (£2.58bn), the investment banking revenue was down by 9% to $1.8bn (£1.45bn), while Treasury Services revenue slipped 4% to $1.1bn (£890m).
However, lending revenue was up by 5% to $337m (£271.57m), driven largely by higher net interest income, which marked growth in loan balances.
The bank’s commercial banking unit reported a net income of $996m (£802.62m) for the second quarter of 2019, compared to $1.087bn (£880m) for the same quarter of 2018.
Net revenue of the business was down 5% to $2.2bn (£1.77bn) in the reported quarter, which was mainly due to lower investment banking revenue, compared to a strong performance in the prior year, and also lower net interest income generated from lower deposit balances.
The bank’s asset and wealth management (AWM) unit’s net income was down by 5% to $719m (£579.4m), compared to $755m (£608.41m) in the second quarter of 2018. On the other hand, the corporate business of JPMorgan Chase reported a net income of $828m (£667.24m) for the second quarter, compared to a net loss of $136m (£109.59m) for the corresponding period last year.
JPMorgan Chase chairman and CEO Jamie Dimon said: “We had a strong second quarter and first half of 2019, benefitting from our diversified global business model. We continue to see positive momentum with the U.S. consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our Consumer & Community Banking results.
“Double-digit growth in credit card sales and merchant processing volumes reflected healthy consumer spending and drove 8% growth in credit card loans, while mortgage and auto originations showed solid improvement, and we continued to attract new deposits, up 3%. Client investment assets were up 16%, driven by both physical and digital channels, including You Invest.”