Tuesday 16 July 2019 12:12 pm

JP Morgan trumps expectations with 16 per cent rise in profits

JP Morgan Chase beat analyst estimates this afternoon after posting a double-digit rise in profit, bolstered by a tax windfall and higher net interest income.

America’s largest bank reported a 16 per cent rise in profit to $9.65bn (£7.7bn) today, or $2.82 per share, trumping Refinitiv estimates of $2.50 per share.

Read more: Citigroup starts Wall St earnings season by beating forecasts

Net income improvements helped shrug off woes at the firm’s trading division, which like many has been coming under pressure during the last 12 months.

However, the firm’s share price tumbled pre-trading after cutting its forecast for 2019 net interest income by $500m to $57.75bn, falling from a previous target of $58bn.

Revenue rose four per cent from a year earlier during the quarter, hitting $28.9bn.

Chairman and chief executive Jamie Dimon said: “We had a strong second quarter and first half of 2019, benefitting from our diversified global business model. We continue to see positive momentum with the US consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our consumer & community banking results.”

He added: “In the corporate & investment bank, markets performance was relatively steady on slightly lower client volume, probably due to slightly higher global macroeconomic and geopolitical uncertainties. Treasury services and securities services demonstrated good organic growth despite headwinds from rates.”

The lender is one of three megabanks posting quarterly earnings today, with Goldman Sachs and Wells Fargo also set to report to the market.

On Monday Citigroup kicked off earnings season by beating analyst estimates for profit expectations, bolstered by gains from a listing of electronic bond trading platform Tradeweb.

Yet despite solid profit growth, weak trading revenues and squeezed lending margins casted a cloud over the group.

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