JP Morgan Earnings topped estimates and here’s all you need to know. The bank posted profits of $11.7 billion for the quarter, that’s an increase of $2.2 billion from a year-ago quarter. Why did the profits increase? It was helped by a $2.1 billion release of reserves set aside last year for bad loans.
Earnings totalled $3.74 per share, well ahead of the $3.00 per share projected by analysts, the reported revenue was $29.6 billion which was forecasted at $29.8 billion. “JPMorgan Chase delivered strong results as the economy continues to show good growth – despite the dampening effect of the Delta variant and supply chain disruptions,” Dimon said in a release.
As mergers and acquisitions activity is in full swing the bank saw a 45% increase from last year, which helped the bank offset a 5% drop in trading revenue.
Close attention needs to be paid to what the bank says about loan growth.
JPMorgan said Wednesday that average loans across the bank were up 5% and that combined debit and credit card spending was up 26%. It added that card payment rates have “stabilized,” which helped loan growth.
Will other banks follow suit in the earnings release? Or is this only the case with investment banks? Opinions?