WASHINGTON — JPMorgan’s second-quarter profit fell to $14.2 billion in the second quarter, but the New York bank beat Wall Street expectations. CEO Jamie Dimon on Tuesday touted another strong performance by the bank, particularly its markets division, where revenue rose by 15% to $8.9 billion.
JPMorgan earned $4.96 per share in the period, adjusted for one-time items, beating the $4.48 per share that analysts were forecasting, but down from last year’s $6.12 per share.
Dimon said the U.S. economy remained resilient in the second quarter, highlighting tax reform and the potential for more deregulation. However, he noted that plenty of risks remain, including tariffs and trade uncertainty, worsening geopolitical conditions and elevated fiscal deficits.
“The finalization of tax reform and potential deregulation are positive for the economic outlook, however, significant risks persist – including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,” Dimon said in prepared remarks.
Dimon often weighs in on global and economic issues that go beyond the scope of banking. He’s seen as the banker that Washington and global leaders can turn to for advice, solicited or unsolicited. His comments tend to reverberate through Washington and Corporate America.
JPMorgan’s net interest income, the difference between the interest the bank takes in on its loan portfolio and the interest in pays out on customer deposits, rose 2% to $23.3 billion.
The country’s biggest banks have benefited from higher interest rates for the last two years, but many expect the Federal Reserve to cut its benchmark lending rate up to two times this year, which will impact banks’ bottom line.
Total managed revenue hit $45.7 billion, also beating expectations but below last year’s $51 billion. Wall Street was expecting revenue just under $44 billion.
Shares of JPMorgan shifted between tiny gains and losses before the bell Tuesday, while broader U.S. markets were essentially flat.
