Jamie DimonJPMorgan CEO Jamie Dimon.REUTERS/Dylan Martinez
JPMorgan Chase  $64.44
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Disclaimer
JPMorgan just reported second-quarter earnings that beat on the top and bottom lines.
The firm reported adjusted earnings per share of $1.46 on revenue of $25.20 billion.
Analysts were expecting adjusted earnings of $1.43 a share on revenue of $24.50 billion, according to Bloomberg.
"Throughout the recent uncertainty and turbulence in the markets, we continued to be there for our clients — solid and steadfast to meet their needs, execute their transactions and provide liquidity," CEO Jamie Dimon said in a statement.
The firm beat expectations on both trading and investment-banking revenues.
Here's the breakdown:
  • Trading revenues of $5.6 billion (versus $5.16 billion expected) were up 23% year-over-year.
  • Fixed-income trading revenue came in at $3.96 billion ($3.57 billion expected), up 35% year-over-year, which the firm said was driven by higher revenues in rates, currencies and emerging markets, credit, and securitized products.
  • Equity markets revenues of $1.60 billion ($1.59 billion expected) were up 2% year-over-year.
  • Investment-banking revenue came in at $1.5 billion ($1.49 billion expected), down 15% year-over-year. That was largely driven by lower equity underwriting fees, according to the firm.
In the same quarter last year, JPMorgan reported earnings of $1.54 a share on revenue of $24.3 billion.
In the first quarter, JPMorgan reported earnings of $1.35 a share on revenue of $24.08 billion.
The big story during the second quarter was the UK's decision in June to leave the European Union, which sent shockwaves through markets and could deter central banks from raising interest rates anytime soon.
In the short term, that could be good news for banks' trading revenues, but the long-term impacts are less rosy. Bank profitability is based largely on the rate at which the bank makes loans. Lower global interest rates, in turn, negatively affect banks' bottom lines.
JPMorgan on Tuesday announced that it would raise minimum pay for some 18,000 US employees.
Citigroup and Wells Fargo are set to report second-quarter earnings on Friday, followed byBank of America Merrill Lynch on Monday, Goldman Sachs on Tuesday, and Morgan Stanley on Wednesday.

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