JPMorgan (JPM) 2021 Q2 Earnings Report

JPMorgan Chase & Co. (NYSE:JPM) started its journey way back in 1979 with the establishment of its first predecessor called the Manhattan Company. The bank in its current form is a result of the consolidation of hundreds of predecessor institutions during its decades-long journey. It is considered one of the world’s oldest and biggest financial institutions. JPMorgan offers a range of financial and investment banking services across all major capital markets around the world.

The New York-based bank recently announced better-than-expected financial results for the first quarter. JPMorgan reported earnings of $11.95 billion, or $3.78 per share for the three months ended June 30, well above $4.69 billion, or $1.38 per share in the comparable period of 2020. Analysts, on average, were looking for earnings of $3.20 per share.

Revenue for the quarter slipped 7.2 percent on a year-over-year basis to $31.40 billion but surpassed analysts’ average estimate of $29.97 billion. Moreover, net interest income declined 8 percent to $12.9 billion, just below the consensus forecast of $13 billion.

If we look at the performance of key divisions, revenue from the consumer and community banking (CCB) segment jumped 3.3 percent to $12.76 billion, while revenue from the corporate and investment bank (CIB) segment plummeted 19.3 percent to $13.21 billion. On the bright side, equity markets revenue jumped 13 percent to $2.7 billion.

Commenting on the quarter, CEO Jamie Dimon said, “JPMorgan Chase delivered solid performance across our businesses as we generated over $30 billion in revenue while continuing to make significant investments in technology, people and market expansion. This quarter we once again benefited from a significant reserve release as the environment continues to improve, but as we have said before, we do not consider these core or recurring profits. Our earnings, not including the reserve release, were $9.6 billion. Consumer and wholesale balance sheets remain exceptionally strong as the economic outlook continues to improve. In particular, net charge-offs, down 53%, were better than expected, reflecting the increasingly healthy condition of our customers and clients.”

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