JPMorgan Chase & Co (NYSE:JPM, XETRA:CMC) reported second-quarter profit and revenue that topped Wall Street expectations, as strength in investment banking and trading fees drove a 41% jump in net income.
The bank posted net income of $21.2 billion, with earnings per share of $7.70 topping the $5.72 estimate.
Revenue rose 27% to $58.02 billion, well above the $51.39 billion forecast.
Net interest income came in at $25.62 billion, up 10% year-over-year and roughly in line with estimates.
Trading and investment banking were standout drivers. Investment banking revenue jumped 45% to $3.9 billion, equities sales and trading nearly doubled with an 86% gain to $6.03 billion, and FICC trading rose 6% to $6.05 billion.
By segment, Consumer & Community Banking revenue grew 8% to $20.27 billion, the Commercial & Investment Bank rose 27% to $24.85 billion, and Asset & Wealth Management climbed 19% to $6.85 billion.
Loans totaled $1.54 trillion and deposits $2.71 trillion, both ahead of estimates, while assets under management rose 18% to $5.1 trillion. Net charge-offs of $2.37 billion came in below the $2.62 billion estimate, and the provision for credit losses was $2.52 billion.
Return on equity hit 24%, versus an 18% estimate, with return on tangible common equity at 29%. The standardized CET1 ratio stood at 14.1%.
JPMorgan declared a $1.50 per share dividend, repurchased $6.2 billion of stock net of issuances, and authorized a new $50 billion buyback program.
The bank raised its full-year 2026 outlook, lifting its NII ex-Markets forecast to $96.5 billion from $95 billion and its adjusted expense outlook to $107.5 billion from $105 billion, while lowering its Card Services net charge-off rate outlook to 3.2% from 3.4%.
Jefferies pointed to a 30% rise in IB fees, an 18% increase in asset management fees, and 12% growth in payments revenue as the main fee drivers, with higher revenue-related compensation pushing expenses up.
Analysts at the research firm called the results "generally positive," citing the improved NII and Card NCO guidance as key positives, but noted investors may weigh those against the higher expense outlook and a slight rise in deposit costs.