JPMorgan Chase Q2 Profit, AUM Climb; But Shares Drop

(RTTNews) - Banking major JPMorgan Chase & Co. reported Tuesday signifiacntly higher profit in its second quarter, benefited by one-time gains related to Visa and certain equity investments, as well as improved results in all segments. The company also reported strong growth in assets under management.

Meanwhile, in pre-market activity on the NYSE, the shares were losing around 2.6 percent, trading at $325.92.

Jamie Dimon, Chairman and CEO, attributed that the stronger business investment is being supported by several tailwinds, including AI-driven capital investment, fiscal stimulus and the benefits of more efficient regulation.

Dimon added, "However, several risks are shifting below the surface like tectonic plates, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices. We cannot predict how these forces will ultimately play out. They may remain manageable, but they could also cause meaningful disruptions when they shift or collide. We carefully monitor these risks and prepare the Firm for a wide range of scenarios to ensure that we can serve our customers and clients consistently in all environments."

The company's net income in the second quarter climbed 41 percent to $21.16 billion from last year's $14.99 billion. Earnings per share grew 47 percent to $7.70 from $5.24 a year ago.

The latest quarter results were benefited by a $4.6 billion or $1.27 per share net gain related to Visa shares in Corporate as well as $1.0 billion or $0.29 per share of gains on certain equity investments.

Adjusted net income, excluding significant items, were $16.9 billion or $6.14 per share in the quarter.

Provision for credit losses declined 12 percent from last year to $2.52 billion.

Net revenue on a reported basis grew 28 percent to $57.35 billion from last year's $44.91 billion. Net revenue - managed increased 27 percent to $58.02 billion from last year's $45.68 billion.

Net revenue grew 15 percent excluding significant items. Net interest income was $25.6 billion, up 10 percent. Noninterest revenue was $32.4 billion, up 45 percent, or up 20 percent excluding significant items.

The company noted that performance was strong across the business, with revenue in each line of business hitting a new record.

In the Consumer & Community Banking, net revenue was $20.27 billion, up 8%.

In the Commercial & Investment Bank or CIB, revenue grew 27 percent to $24.85 billion and outperformed expectations, with Markets revenue growing 35 percent due to elevated client activity, strong trading performance and continued demand for financing in Equities.

Investment Banking revenue climbed 45 percent, predominantly driven by higher Investment Banking fees and net gains on equity investments.

In Asset & Wealth Management, revenue increased 19 percent from last year to $6.85 billion.

The company noted that assets under management or AUM were $5.1 trillion, up 18 percent year-over-year, and client assets were $7.7 trillion, up 19 percent, driven by higher market levels and continued net inflows.

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