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JPmorgan Profit Beats Estimates As Expenses Fall

Source: thewillnigeria.com
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JPMorgan Chase & Co (JPM.N), the biggest U.S. bank by assets, reported a stronger-than-expected rise in quarterly profit as legal and restructuring expenses declined.

Net income attributable to the bank’s common shareholders rose to $5.78 billion, or $1.54 per share in the second quarter ended June 30 from $5.57 billion, or $1.46 per share, a year earlier.

Analysts on average had expected earnings of $1.44 per share, according to Thomson Reuters I/B/E/S.

JPMorgan’s shares were up 1.3 percent to $69 in premarket trading on Tuesday.

Total revenue fell 3.5 percent to $23.81 billion, while revenue from fixed-income trading fell 21 percent to $2.93 billion.

Adjusted for the sale of a physical commodities business and other adjustments, fixed-income trading would have fallen 10 percent.

JPMorgan is the first of the U.S. banks with large capital markets and investment banking operations to report second-quarter results.

Many are expected to report underwhelming bond trading results due to a downturn in bond trading markets in June.

Investor worries spanned the globe last quarter, ranging from the Greek debt crisis to concerns that the U.S. Federal Reserve would not be able to raise interest rates this year.

JPMorgan’s non-interest expenses declined 6 percent to $14.50 billion in the quarter, helped by business simplification and lower legal and mortgage banking expenses.

“We’ve made good progress this quarter, including meeting regulatory requirements, reducing non-operating deposits, and adding to our capital,” Chief Executive Jamie Dimon said in a statement. “We are also on target to deliver on our expense commitments.”

REUTERS