JPMorgan Chase reports higher profits, upbeat on US economy

A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in Manhattan, New York, November 13, 2017. — Reuters pic
A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in Manhattan, New York, November 13, 2017. — Reuters pic

NEW YORK, July 16 — JPMorgan Chase reported a jump in second-quarter profits today behind strength in consumer and business banking as its CEO offered an upbeat appraisal of US economic trends.

Net profit came in at US$9.7 billion (RM39.8 billion), up 16.1 per cent and a company record.

Revenues were up 4.1 per cent to US$29.6 billion.

Key areas of strength included consumer banking, where JPMorgan scored from higher net interest income — the difference between the interest rates it charges consumers for loans and the interest it must pay for deposits.

The bank also generated higher revenues connected to its credit card business, along with higher auto loans and lease originations.

The strong performance in the consumer-oriented businesses made up for weakness elsewhere. Revenues fell sharply in equity markets, while overall investment banking revenues declined due to lower fees across products.

“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,” said chief executive Jamie Dimon.

The results are among the first from large banks against a backdrop of uncertainty over international trade and an anticipated loosening of monetary policy, with the Federal Reserve expected to cut interest rates later this month.

Shares in JPMorgan fell 1.7 per cent to US$111.95 in pre-market trading. — AFP

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