JPMorgan Chase beats estimates in 2Q

JPMorgan Chase chief Jamie Dimon (right) with traders on the NYSE floor. Growth in investment banking at the largest U.S. bank was cited in the quarterly profit jump of 32 pct.
JPMorgan Chase chief Jamie Dimon (right) with traders on the NYSE floor. Growth in investment banking at the largest U.S. bank was cited in the quarterly profit jump of 32 pct. (RICHARD DREW / Associated Press)
Posted: July 14, 2013

NEW YORK - JPMorgan Chase & Co., the country's biggest bank, says its second-quarter earnings surged from a year ago as profit from investment banking grew.

The bank made $6.1 billion in the second quarter after stripping out payments to preferred shareholders. That was up 32 percent from the same period a year ago, when it made $4.6 billion. Profit in the year-ago period was affected by a trading loss.

San Francisco-based Wells Fargo, one of the two largest banks by deposits in the Philadelphia region (along with TD Bank), reported earnings that were 19 percent better than a year ago. Revenue increased to $21.4 billion, and expenses were reduced, the bank reported.

For JPMorgan Chase, the earnings were equivalent to $1.60 per share. That exceeded the estimates of analysts polled by FactSet, who had forecast earnings of $1.44 per share.

Revenue in the period grew 14 percent to $25.2 billion. That compared with $24.9 billion forecast by analysts.

JPMorgan's profit from investment banking surged 19 percent to $2.8 billion, driven by higher fees for underwriting debt and stock offerings as financial markets revived.

Average total deposits rose 8 percent to $389.5 billion from the same period a year ago. Mortgage loan applications rose 37 percent from the previous year to $66.9 billion, reflecting an increase in refinancing activity.

At Wells Fargo, cost-cutting and improved loan quality helped the nation's biggest U.S. mortgage lender overcome meager revenue growth.

Net income rose to $5.27 billion from $4.40 billion a year earlier, excluding dividend payments on preferred stock. On a per-share basis, earnings were 98 cents, beating the 93 cents forecast by Wall Street.

Revenue edged up to $21.4 billion from $21.3 billion and exceeded Wall Street expectations.

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