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J.P. Morgan Chase has posted earnings above badysts' expectations, thanks to a tax benefit that has increased results by $ 768 million.
The bank on Tuesday posted a record profit of $ 9.65 billion in the second quarter, up 16% from the previous year, or $ 2.82 a share, outperforming the 2-year estimate. , 50 dollars of badysts surveyed by Refinitiv. The company's revenues also exceeded expectations at $ 29.57 billion, an increase of 4% over the previous year, compared to an estimate of $ 28.9 billion.
JP Morgan said the increase in taxes came from the resolution of "certain tax audits" that increased the company's earnings per share by 23 cents. J.P. Morgan's shares plunged 1.5% to 7:01 am in pre-sale transactions.
The bank's fixed income trading division generated revenues of $ 3.69 billion, an increase of 7% exceeding the estimate of $ 3.36 billion. Meanwhile, its equity trading business generated revenues of $ 1.73 billion, a decrease of 12%, which missed badysts' estimate of $ 1.84 billion.
The largest US bank in terms of badets is being watched closely by investors looking for signs of the Main Street and Wall Street business situation during the period. Bank stocks have rebounded in recent months as strong results from lenders' retail operations helped push companies such as JP Morgan to record profits, offsetting lower trading and non-trading revenue. Wall Street.
Analysts will ensure J.P. Morgan continues to build momentum in the first quarter, as higher interest rates have helped her to exceed earnings and earnings expectations. They will want to ask senior executives about the impact of imminent Federal Reserve interest rate cuts, as this could squeeze margins on the banks' core lending activities.
In May, J.P. Morgan announced the acquisition of the $ 500 million medical payments company InstaMed, its largest acquisition since the financial crisis, to penetrate deeper into the health care market.
The bank has also deployed a digital crawler in order to persuade banking customers to make investments with the company.
Last month, JP Morgan secured regulatory approval to increase his dividend by 80 cents to 90 cents per share and announced a $ 29.4 billion share buyback program.
Earlier this week, Citigroup reported Q2 earnings exceeding badysts' expectations, thanks to a $ 350 million increase in revenue from the IPO of the Tradeweb bond trading platform.
This is what Wall Street was waiting for:
- Profit: $ 2.50 per share, an increase of 9.1% over the previous year, according to Refinitiv.
- Revenues: $ 28.9 billion, up 1.8% from the previous year.
- Margin of net interest: 2.51%, according to FactSet
- Trading revenue: fixed revenues of $ 3.36 billion, shares of $ 1.84 billion
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