Home news JP Morgan Chase second quarter profits rise to $7bn

JP Morgan Chase second quarter profits rise to $7bn

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US banking giant JP Morgan Chase has reported a 13% rise in second quarter profits to $7bn (£5.4bn).The bank said loans and deposits continued to grow strongly, helping to offset a weaker performance at its financial market operations.Rival bank Citigroup reported a 5% fall in quarterly profits to $3.9bn. It blamed higher costs and taxes, as well as increased costs for bad loans.Citigroup’s chief executive said that its retail banking division did well.Michael Corbat also said the bank’s investment banking business had a “very strong” quarter.’Healthy consumers’JP Morgan reported total net revenues of $26.4bn for the second quarter of the year, a 4.7% increase from the same period a year earlier.Revenues were helped by an 8% increase in interest income, which the bank said was driven by the impact of rising US interest rates as well as growth in the number of loans.”The US consumer remains healthy,” said JP Morgan chief executive, Jamie Dimon.”Loans and deposits continue to grow strongly and card sales and merchant processing volumes were up double digits.” US banks had been expected to benefit from the recent increases in interest rates. The US Federal Reserve’s target range for its key rate is now between 1% and 1.25%, whereas a year earlier it was between 0.25% and 0.5%.Mr Dimon said the decline in revenue at its trading division reflected “lower volatility and client activity”. A year earlier trading revenues had been boosted by the increased volatility generated by the UK’s vote to leave the EU.
Source: BBC