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JPMorgan Chase’s second-quarter profits more than doubled, as the release of billions of dollars to cover possible loan losses, along with commissions from operations advice, offset the slowdown in business activity and lack of demand for loans.
The largest U.S. bank reported a profit of $ 11.9 billion, or $ 3.78 per share, compared to $ 4.7 billion or $ 1.38 per share in the same period last year. Analysts forecast earnings of $ 3.13 per share, according to consensus data compiled by Bloomberg.
$ 31.4 billion in revenue exceeded analysts ’forecasts of $ 30 billion, but fell from $ 33.8 billion a year earlier.
The profits were flattered by the release of $ 3 billion that had been set aside to cover the potential losses caused by the economic consequences of the Covid-19 pandemic, which have not materialized.
Prior to the income statement, one of JPMorgan’s central issues was the bank’s outlook on loan growth and net interest income, which measures the difference between what banks pay for deposits and what they earn with loans. and other assets. Both metrics have been affected by government stimulus and a flattening performance curve.
Loans to JPMorgan’s community banking and consumer division fell 3% due to higher mortgage prepayments and lower balances in their credit card business, said CEO Jamie Dimon.
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