Aggressive · Stocks to Consider and Updates

JPMorgan Chase Beats Estimates

New York money-center bank JPMorgan Chase & Co. (NYSE: JPM – $107.58) said second quarter earnings came in at $2.29 a share, up from $1.82 during the same period last year and seven cents better than consensus. Profit was reported at $8.32 billion, an 18% increase, the highest ever for the company. Total revenue was $27.75 billion, up from $25.73 billion in the same period a year ago also exceeding the Street projection of $27.28 billion. Net interest income jumped 9%, mostly driven by higher interest rates and loan growth. Non-interest revenue came in at $14.7 billion, a 4% increase, amid rising investment banking fees and auto lease income. Non-interest expense was $16 billion, an 8% gain, on higher compensation costs, investments in technology and auto lease depreciation. On a business-by-business basis:

  • Commercial Banking revenue grew 11% amid strength in investment banking and treasury services along with solid loan growth.
  • The Asset & Wealth Management sector saw an increase of 4% revenue growth driven by higher management fees.
  • Consumer and Community Banking revenue was $6.1 billion up 17% predominantly driven by higher net interest income as a result of higher deposit margins and growth. Profits surged 53%.
  • The Corporate & Investment Bank segment posted an 18% profit advance, supported by double-digit revenue growth nearly across the board, with particular strength in investment banking, treasury services and equity markets revenue.

       Full-year earnings are estimated by analysts at $9.03 per share compared to $6.92 last year and the 2019 per share tally could be close to $9.80. While the financial sector is taking a well-needed breather, holdings in JPM remain a solid aggressive account choice and the 3% growing dividend yield sweetens the pot.

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