…Racks up US$31.4 billion in revenue

International banking behemoth JP Morgan beat analysts estimates for Q2, 2021 reporting net income of US$11.9 billion from revenues of US$31.4 billion.

The revenue figure for the quarter under review was down US$2.4 billion or seven per cent year on year.

Earnings Per Share (EPS) came in at US$3.78, a US$0.75 increase. Assets under management grew to US$3 trillion, up 21 per cent.

Fixed income trading generated US$4.1 billion in revenue with equities brining in a further US$2.69 billion. Investment banking contributed US$3.4 billion, exceeding estimates.

While trading revenue fell by 30 per cent, deposits went up 23 per cent year on year. Debit and credit reserve spend rose by 45 per cent year on year with US$3 billion of credit reserve releases registered for the second quarter of 2021.

Speaking on this financial performance for the quarter under review, JP Morgan’s Chairman and CEO Jamie Dimon said: “JP Morgan Chase delivered a solid performance across our businesses as we generated over US$30 billion in revenue while continuing to make significant investments in technology, people and market expansion. This quarter we once again benefited from a significant reserve release as the environment continues to improve, but as we have said before, we do not consider these core or recurring profits.

“Our earnings, not including the reserve release were US$9.6 billion. Consumer and wholesale balance sheets remain exceptionally strong as the economic outlook continues to improve. In particular net change-offs down 53 per cent, were better than expected, reflecting the increasingly healthy condition of our customers and clients.”

KEY FIGURES FROM JP MORGAN IN SPURRING ECONOMIC GROWTH

• $10 billion of credit for US small businesses
• $656 billion of credit for corporations
• $879 billion of capital raised for corporate clients and non-US Government entities

Dimon continued: “We are constantly investing, innovating and making strategic add on acquisitions to better serve our employee customers and communities. In the first half of 2021, we extended credit and raised US$1.7 trillion in capital for businesses, institutional clients and US customers. We are executing on our commitments to advance economic opportunity and racial equity and launched a new initiative focused on improving healthcare for our employees and the communities we serve.”