JPMorgan Chase (JPM) has posted better-than-expected second-quarter financial results driven by a 50% increase in fees earned from investment banking activities.
The largest U.S. bank with more than $3 trillion U.S. of assets under management (AUM), reported earnings per share (EPS) of $4.40 U.S., which was ahead of the $4.19 U.S. expected on Wall Street.
Revenue in the quarter totaled $50.99 billion U.S. versus $49.87 billion U.S. that was the consensus forecast of analysts.
The lender attributed the strong results to a rebound in investment banking activity that includes initial public offerings (IPOs) and mergers and acquisitions (M&A).
JPMorgan also benefitted from strong stock trading activity with markets sitting at a record high.
The bank recently passed the U.S. Federal reserve’s annual stress test, freeing it up to return excess capital to shareholders in the form of dividends and stock buybacks.
As a result, JPMorgan recently raised its quarterly dividend to $1.25 U.S. per share from $1.15 U.S. previously. The bank also announced a new $30 billion U.S. share repurchase program.
JPMorgan is the first of the major U.S. commercial banks to report its Q2 results.
The stock of JPMorgan Chase has gained 40% over the past 12 months to trade at $207.45 U.S. per share.
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