News

JPMorgan (JPM) reported record profit as investment bankers and equities traders at the biggest US bank surpassed expectations and the firm gained from a multibillion-dollar Visa (V) share exchange. Investment banking fees soared by 50%, while equities traders saw a 21% revenue jump. The Visa transaction added $7.9 billion to second-quarter profit.

Jamie Dimon warned about inflationary forces and geopolitical risks, suggesting that inflation and interest rates might stay higher than the market expects. Despite record profits, JPMorgan's net interest income fell short of analysts' estimates. Expenses climbed more than expected, and the bank took its highest provision for loan losses since the early days of the pandemic.

Market Overview:

• JPMorgan reported record profit with a $7.9 billion gain from Visa transaction.


• Investment banking fees jumped 50%, equities traders saw a 21% revenue increase.


• Chief Executive Jamie Dimon warned about inflation and geopolitical risks.

Key Points:

• Net interest income fell short of estimates, expenses climbed more than expected.


• Provision for loan losses was the highest since the early days of the pandemic.


• Shares of JPMorgan dropped 1.7%, Wells Fargo slid 6.4%, and Citi dropped 2.4%.

Looking Ahead:

• Goldman Sachs (GS), Bank of America (BAC), and Morgan Stanley (MS) are set to report earnings next week.


• JPMorgan expects to earn about $91 billion in net interest income this year.


• Analysts predict a second straight drop in net interest income for the second quarter.

Shares of JPMorgan dropped 1.7%, Wells Fargo (WFC) slid 6.4%, and Citi (C) dropped 2.4%. Wells Fargo’s expenses exceeded analysts’ expectations, and Citi’s costs are likely to be at the high end of forecasts. Goldman Sachs, Bank of America, and Morgan Stanley are set to report earnings next week.

JPMorgan earned $18.1 billion in net income in the second quarter, up 25% from the previous record a year earlier. The bank's Wall Street businesses surpassed expectations, with investment-banking fees reaching $2.4 billion and equities trading revenue nearly $3 billion. Despite this, net interest income for the second quarter showed a second straight drop.

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