The biggest US bank by assets kicked off the latest earnings season with better-than-expected figures
For the second quarter of 2021, JPMorgan Chase reported an EPS of $3.78, topping the $3.21/share estimates. Revenue figures also came ahead of the $29.9 billion consensus at $31.4 billion. The figures came from a method used by the industry – after setting aside tens of billions of dollars for loan losses last year, banks released reserves as borrowers have held up better than expected.
The bank posted a $2.3 billion benefit from releasing $3 billion in loan loss reserves. CEO Jamie Dimon stated: “Consumer and wholesale balance sheets remain exceptionally strong as the economic outlook continues to improve.” He added that the improving US economic outlook drove the decision to release money aside for loan losses.
During the quarter, the bank managed to offset the drop in revenue from trading. JPMorgan posted $3.4 billion in investment banking revenue, single-handedly beating the $300 million expected through mergers and acquisition financing.
Since the beginning of the year, JPMorgan Chase stocks gained 24%, topping the 17% surge of the USA500 index.
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Key Way Markets Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.