J.P. Morgan Chase & Co. said its second-quarter profit rose as a boost from lending offset weaker trading results for the nation’s biggest bank by assets.
The bank reported a profit of $7.03 billion, or $1.82 a share. That compares with a profit of $6.2 billion, or $1.55 a share, in the same period of 2016. Analysts polled by Thomson Reuters had expected earnings of $1.58 a share.
Revenue rose to $26.41 billion. Analysts had expected $24.96 billion.
J.P. Morgan, run by Chief Executive James Dimon, is one of a trio of big banks kicking off second-quarter earnings season for U.S. financial institutions. Together, the firms — which include Wells Fargo & Co. and Citigroup Inc. — offer investors a snapshot of a quarter that analysts expect will be characterized by softer loan growth and trading headwinds. Also, with expected regulatory loosening not yet resulting in definitive changes, higher U.S. interest rates continue to be the most concrete benefit to banks in mid-2017.
Since the election, shares are up 33% alongside a 29% jump in the KBW Nasdaq index of bank stocks.
After a volatile 2016, large U.S. banks’ stocks had come roaring back since the election, especially as the Trump administration nominated people with deep Wall Street experience to key posts. But with no action yet in key areas like tax, bank stocks have struggled to gain much further ground.
Write to Emily Glazer at [email protected]