Net income at JP Morgan Chase has slumped slightly year-on-year, but comfortably beat analysts' expectations, the banking giant reported today.
The company reported net income of $6.2bn (£4.6bn) for its second quarter of the financial year, down one per cent compared with $6.3bn the year before but up 12 per cent on $5.5bn in the last quarter.
However, the bank's earnings per share inched up to $1.55, a one per cent increase from $1.54 in the second quarter of 2015 and a 15 per cent increase from $1.35 in the last quarter.
Meanwhile, JP Morgan Chase reported net revenue of $25.2bn, up three per cent from $24.5bn the year before and up five per cent on $24.1bn the quarter before.
Shares were up 2.7 per cent at $64.85 in pre-market trading.
Why it's important
Given the mixture of low interest rates and EU referendum uncertainty, investors were unlikely to be expecting a bumper set of profits from these results. All things taken into account, today's slight slip in profits is pretty good and, according to data posted by Reuters, safely beat analysts' expectations of earnings per share of $1.43.
JP Morgan is also the first bank to reveal its earnings this reporting season, as well as the first big name to report following the UK's vote to leave the EU last month.
The impact of the Brexit vote is likely on not only investors' minds but also those of JP Morgan's 16,000-odd UK staff – Jamie Dimon, chairman and chief executive, has previously indicated the company could shift jobs out of the UK, depending on what rights the UK can secure in its exit negotiations.
The earnings statement did not hint at any Brexit related plans for the bank. However, on a conference call with investors, finance chief Marianne Lake and Dimon – who had to croak his insight thanks to a sore throat – both stressed that it was very early days following the vote and, therefore, too soon to say with certainty what the bank would do.
"It will create uncertainty for an extended time period," said Dimon, adding that the time period concerned would be measurable in "years".
What JP Morgan Chase said
Dimon wrote in the earnings statement: "Overall, our performance reflected the strength of our balance sheet and our ability to invest in the future of our company. We will continue to be a source of strength for our clients, communities, governments and markets around the world."
A slightly better than expected set of earnings to kick off US bank results.