JPMorgan Chase earnings beat expectations

July 22 00:54 2015

JPMorgan Chase on Tuesday delivered quarterly earnings that topped analysts’ expectations, helped by lower expenses. The banking giant posted second-quarter earnings of $1.54 per share, up from $1.46 a share in the year-earlier period. Revenue fell to $24.5 billion from $25.35 billion a year ago. Analysts expected to post earnings of $1.44 per share on revenue of $24.51 billion, according to a consensus estimate from Thomson Reuters.100423_jpmorgan_reuters_328

JPMorgan shares rose in premarket trading following the announcement. Revenue from fixed-income trading fell 21 percent to $2.93 billion. Adjusted for the sale of a physical commodities businesses last year, it would have fallen 10 percent. Drexel Hamilton analyst David Hilder said stripping out some nonrecurring items in the earnings-per-share number, the earnings look more in line with consensus and not quite as far above estimates as the headline suggests.

Still, he noted that equity trading revenues rose 27 percent year over year, investment banking fees jumped 4 percent and loan growth was “strong” with core loans up 12 percent. Little is changing for banks quarter to quarter without an interest rate hike from the Federal Reserve, he said. “Once the Fed starts raising rates, there will be a benefit for the large banks, including JPMorgan.” Adjusted for the sale of a physical commodities business and other adjustments, JPMorgan’s fixed-income trading would have fallen 10 percent.

JPMorgan was the first of the U.S. banks with large capital markets and investment banking operations to report second-quarter results. Many are expected to report underwhelming bond trading results due to a downturn in bond trading markets in June. Investor worries spanned the globe last quarter, ranging from the Greek debt crisis to concerns that the U.S. Federal Reserve would not be able to raise interest rates this year.JPMorgan’s non-interest expenses declined 6 percent to $14.50 billion in the quarter, helped by business simplification and lower legal and mortgage banking expenses