The country’s largest bank just raked in more quarterly profit than any US bank ever. <\/p>\n
JPMorgan Chase (JPM<\/a>) said profits jumped 41% to $21.2 billion in its second quarter, or $7.70 per share, far exceeding the $5.64 per share analyst had expected. Total net revenue rose 28% to $57 billion, compared to $45 billion in the year-ago quarter. <\/p>\n CEO Jamie Dimon said in the earnings release that the blockbuster results “were the product of a particularly favorable environment with an elevated level of market activity, as well as rigorous execution, years of consistent investment and thoughtful capital deployment.” <\/p>\n “The U.S. economy has demonstrated notable resiliency this year,” Dimon added, pointing to several tailwinds including AI-driven capital investment, fiscal stimulus, and deregulation. <\/p>\n “However, several risks are shifting below the surface like tectonic plates, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices. We cannot predict how these forces will ultimately play out,” he warned. <\/p>\n JPMorgan said a big profit boost came from a $4.6 billion net gain on the sale of Visa shares<\/a> held by its corporate division. It also noted $1 billion of gains on certain equity investments. During its prior record quarter in 2024, JPMorgan also recognized gains related to its Visa shares. <\/p>\n Without those one-time gains, the bank’s net income of $16.9 billion would still have far exceeded the Street’s expectations. <\/p>\n JPMorgan’s results kick off what analysts expect will be another strong earnings season for big banks. The industry has been buoyed by a resurgence in Wall Street activity, with its dealmaking and trading businesses benefiting from a surge in raising capital to fund the AI boom. <\/p>\n For JPMorgan, equity trading jumped 86% from a year ago to a record $6 billion. <\/p>\n The equity underwriting group, which includes underwriting initial public offerings, earned fees from several of the quarter’s biggest AI-related deals. That includes SpaceX’s (SPCX<\/a>) blockbuster IPO and Alphabet’s (GOOG<\/a>, GOOGL<\/a>) even larger follow-on stock sale. Revenue from that unit jumped 78% to $829 million. <\/p>\n Other giants, including Bank of America<\/a> (BAC<\/a>), Citigroup (C<\/a>), Wells Fargo (WFC<\/a>), and Goldman Sachs<\/a> (GS<\/a>), also reported results Tuesday morning. <\/p>\n JPMorgan’s lending business remained a core profit engine in the period. Its net interest income rose 10% to $25.5 billion. The company also raised its full-year guidance for net interest income (excluding its Markets business) by $1.5 billion to $96.6 billion, according to an earnings presentation. <\/p>\n The bank’s Main Street businesses also showed its US consumer customers remain in overall healthy condition. The JPMorgan’s sprawling consumer bank reported combined debit and credit card sales volume rose 10% from the year-ago period. The bank also lowered the percentage of card loans it expects to write off this year to 3.2%, down from its 3.4% April projection. <\/p>\n JPMorgan CFO Jeremy Barnum said at the margin” consumer clients look “a little bit stronger” compared to April. <\/p>\n “We’ve talked about the consumer being fine, and I think relative to that, the consumer is maybe slightly better this quarter… the labor market remains quite resilient… it’s not a dramatic shift, but at the margin, I would say the consumer is a little bit stronger.” <\/p>\n David Hollerith covers a range of developments throughout the financial sector, from Wall Street to banking and asset management to crypto and fintech. Email him at david.hollerith@yahoofinance.com. Follow him on X at @DsHollers. <\/p>\n