JPMorgan Chase (JPM) reported second-quarter results above market expectations on Tuesday, driven by higher investment banking fees and markets revenue.
The banking giant posted earnings of $7.70 a share for the quarter ended June, up from $5.24 a year earlier and the FactSet-polled consensus of $5.59. Consolidated revenue jumped 28% to $57.35 billion, topping the average analyst estimate of $51.09 billion.
"These results were the product of a particularly favorable environment with an elevated level of market activity," Chief Executive Jamie Dimon said in the earnings release. "Performance was strong across the firm, and revenue in each line of business hit a new record."
Revenue in the commercial and investment banking segment advanced to $24.85 billion from $19.54 billion in the prior-year period. Investment banking revenue gained 45% to $3.9 billion on the back of fees that reached the highest level since 2021 and net gains on equity investments.
Markets revenue increased 35% to $12.1 billion amid increased client activity, strong trading performance and demand for financing in equities, Dimon said.
The US economy has "demonstrated notable resiliency" this year amid robust business investment and hiring, supported by tailwinds including artificial intelligence-driven capital spending, Dimon said.
"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," he added.
Tensions between the US and Iran recently renewed over the Strait of Hormuz, weeks after they signed a memorandum of understanding to end their war that began at the end of February.
Bank of America (BAC), Goldman Sachs (GS), Wells Fargo (WFC) and Citigroup (C) posted stronger-than-expected second-quarter results Tuesday, driven by a surge in markets revenue and investment banking fees.
BofA Securities said last week that major US banks could top second-quarter earnings expectations amid gains from capital markets activity.
JPMorgan's consumer and community banking revenue rose 8% to $20.27 billion in the second quarter. Assets under management gained 18% to $5.1 trillion, boosted by higher market levels and net inflows.
JPMorgan on Tuesday raised its 2026 net interest income outlook to about $105.5 billion from $103 billion. The bank now expects full-year adjusted expenses at about $107.5 billion, compared with $105 billion previously expected.
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