JPMorgan Chase (NYSE:JPM) on Tuesday reported second-quarter profit that beat analysts’ expectations on record trading revenue bolstered by surging volatility and the Federal Reserve’s unprecedented actions to prop up credit markets.
The bank posted earnings of $4.69 billion, or $1.38 a share, exceeding the $1.04 per share estimate of analysts. Revenue of $33 billion exceeded the $30.3-billion estimate.
"Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy," CEO Jamie Dimon said in the release.
"However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm."
Morgan, the biggest U.S. bank by assets, is the first major lender to report earnings for the period that ended in June. The company is closely watched for clues on how the coronavirus pandemic is impacting banks’ retail and institutional businesses.
While the company set aside $8.9 billion for expected loan losses across the firm, crimping results in the lender’s giant retail bank, better-than-expected revenue in its Wall Street operations helped offset some of that pain.
The bank’s traders handily exceeded expectations that were already heightened for the quarter after managers said in late May that markets revenue was headed for a 50% increase. It jumped by 79% to a record $9.7 billion, fueled especially by strong fixed income trading.
JPM shares gained $1.93, or 2%, to $99.58 soon after Tuesday’s open.
