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VOL. 37 | NO. 28 | Friday, July 12, 2013
JPMorgan's second-quarter profit surges
NEW YORK (AP) — JPMorgan Chase, the country's biggest bank by assets, says its second-quarter earnings surged as consumer deposits rose and credit card volumes increased.
The bank made $6.1 billion in the second quarter after stripping out payments to preferred shareholders. That was up 32 percent from the same period a year ago, when it made $4.6 billion.
The earnings were equivalent to $1.60 per share. That exceeded the estimates of analysts polled by FactSet, who had forecast earnings of $1.44 per share.
Revenue in the period grew by 14 percent to $25.2 billion. That compared with $24.9 billion forecast by analysts.
JPMorgan's profits from investment banking surged 19 percent to $2.8 billion, driven by higher fees for underwriting debt and stock offerings as financial markets revived.
The bank also reduced its provision for loan losses in its consumer banking division by $1.5 billion as the number of customers failing to repay their loans remained low.
Despite the surge in profits, JPMorgan CEO Jamie Dimon said in a statement that loan growth remained "soft." That's a sign business and consumers are still wary of taking on more debt despite the Federal Reserve's low interest rate policies.
"However, we continue to see broad-based signs that the U.S economy is improving," Dimon said. "We are hopeful that as jobs are added and confidence builds, the U.S. economy will strengthen over time."
JPMorgan's stock was little changed at $55.14 in pre-market trading. The bank's stock is trading close to its highest in more than a decade and is up 25 percent this year.