JPMorgan Chase has reported another robust quarter, with chief executive Jamie Dimon maintaining his caution about various risks the bank remains alert to.
The largest U.S. bank by assets posted a net income of $18.1 billion, or $6.12 per share, indicating a 25% increase from $14.5 billion in the same period last year, according to its second-quarter earnings report released on Friday. Wall Street analysts had estimated a profit of $17.3 billion, or $5.88 per share, based on data from FactSet.
The bank reported $50.2 billion in revenue for the three months ending June 30, surpassing the $42.23 billion forecasted by analysts.
JPMorgan outperformed in several areas, significantly boosting its overall performance. Investment banking fees saw a 50% increase, and its market share rose to 9.5%. Additionally, the bank registered a $7.9 billion gain from new Visa shares.
Despite the strong results, Dimon echoed concerns about geopolitical and macroeconomic risks. He emphasized vigilance regarding “potential tail risks” and noted the complexity and potential dangers of the current geopolitical landscape. He also pointed to ongoing inflationary pressures and the uncertainties surrounding the impact of quantitative tightening.
Shares of JPMorgan fell by 1% in pre-market trading on Friday, influenced by a net interest income that fell short of analyst expectations and a rise in provision for loan losses.
The bank has drawn little concern regarding its ability to handle sustained higher interest rates, which are expected to remain in the 5.25-5.5% range for some more months. JPMorgan reported a net interest income of $22.9 billion, a 4% increase from the previous year.
With $3.7 trillion in assets under management as of June 30, a 15% year-over-year increase, JPMorgan continues to distance itself from other U.S. banking giants. The bank had its best year on record last year, with $49.6 billion in profits, including a $4.1 billion gain from acquiring the failed First Republic Bank in May 2023.
This quarter marks the first time JPMorgan is reporting its full results without separating First Republic’s contributions, as the results are now comparable to the previous year.
Additionally, JPMorgan announced plans to raise its quarterly common stock dividend to $1.25 per share from $1.15 per share for the third quarter of 2024. The board also authorized a new $30 billion common share repurchase program starting July 1. Dimon stated that the dividend increase is supported by JPMorgan’s strong financial performance and represents a sustainable dividend level.
The bank also reported a capital ratio of 15.3%, providing a buffer against potential new capital requirements that could take effect by mid-2025. Following the Federal Reserve’s annual bank stress test results, JPMorgan stated it could face higher losses than those disclosed by the central bank, potentially increasing the capital ratio requirement to 12.3% from its current 11.9% level.