JPMorgan Chase’s investment banking and trading divisions helped cushion a decline in profits, which were boosted by a one-off gain a year ago.
The largest US bank said net income in the quarter fell to $15bn, down 17 per cent from a year earlier. Last year it benefited from a roughly $8bn one-off gain from its stake in Visa. Analysts had forecast profits for the latest quarter of $12.8bn.
Chief executive Jamie Dimon said the US economy remained “resilient” in the June quarter, but added that “significant risks” persist.
Dimon added:
In the [Commercial & Investment Bank], markets revenue rose to $8.9bn, and we supported clients as they navigated volatile market conditions at the beginning of the quarter.
Meanwhile, [investment banking] activity started slow but gained momentum as market sentiment improved, and IB fees were up 7 per cent for the quarter.
The results come on a busy day of earnings in the US, with six major financial companies set to report second-quarter results on Tuesday.
BlackRock earlier said that assets under management climbed to a record $12.5tn in the second quarter, as a market rally and currency swings helped overcome lower than expected inflows.
Citigroup, Wells Fargo and BNY are still set to report before the market opens in New York.
