JPMorgan beats Wall Street’s targets with record quarterly profits, but markets revenue slumped

Kimberly White/Getty Images

• JPMorgan Chase reported second-quarter earnings Tuesday that beat analysts’ revenue and profit expectations, reflecting strong gains in its consumer and community banking division.
• However, the shares fell 1.6% in premarket trading after the bank blamed lower revenues in markets on European "weakness," while equities markets revenue slumped 12%.
• Watch JPMorgan trade live.
  

  ---

JPMorgan Chase posted $2.82 in second-quarter earnings per share, outpacing the $2.50 that Wall Street analysts surveyed by Bloomberg were expecting as consumer and community banking revenues jumped 11%. Results were helped by $768 million of income tax benefits, which boosted EPS by $0.23.

Here are the key numbers:

• Adjusted net income: $9.65 billion versus the $8.17 billion estimate
• Earnings per share: $2.82 versus the $2.50 estimate
• Revenue: $29.57 billion versus the $28.88 billion estimate
• Expenses: $16.34 billion versus the $16.38 billion estimate

"We had a strong second quarter and first half of 2019, benefiting from our diversified global business model," JPMorgan CEO Jamie Dimon said in the statement.

"We continue to see positive momentum with the U.S. consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our Consumer & Community Banking results," he added. "Double-digit growth in credit card sales and merchant processing volumes reflected healthy consumer spending and drove 8% growth in credit card loans, while mortgage and auto originations showed solid improvement, and we continued to attract new deposits, up 3%."

Consumer and community banking revenues jumped 11%, driving the division’s net income up 22%. Net revenue and net income fell in both the corporate and investment bank division and the commercial banking segment, while the asset and wealth management business recorded a 5% drop in net income.

NOW WATCH: Kylie Jenner is the world’s second highest-paid celebrity. Here’s how she makes and spends her $1 billion.

See Also:

• Ray Dalio revealed to us the one key investing strategy he’s used to build his $18 billion fortune
• A Bank of America investment chief overseeing $2.3 trillion is calling for new highs in US stocks. Here are the areas he thinks are best primed for growth.
• Morgan Stanley says it’s time to sell stocks. Here are 3 reasons why the firm is the least confident it’s been in 5 years.

SEE ALSO: JPMorgan and Morgan Stanley just missed out on $170 million in fees after 2019’s biggest IPO got pulled (BUD)

Source: Business Insider – tmohamed@businessinsider.com (Theron Mohamed)