JP Morgan revenue and profits surge as interest rates rise

July 14, 2023 04:27 AM PDT | By Invezz

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JP Morgan revenue and profits surge as interest rates rise — Image source: Invezz

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JP Morgan (NYSE: JPM), the biggest bank in the US, published strong financial results that beat analysts estimates. The company benefited from the rising interest rates and additional inflows following the acquisition of First Republic Bank (FRC).

JP Morgan’s revenue jumped to more than $42.4 billion in the second quarter from the previous $39.3 billion. Its revenue had over $31.6 billion in the previous quarter. Its non-interest expense rose from $18.7 billion in Q2’22 to over $20.8 billion.

The rising interest rates have been good for JP Morgan. The downside is that it has led to higher provisions for credit losses. Provisions jumped to over $2.89 billion from the previous $1.1 billion.

As a result, JP Morgan’s net income soared from $8.6 billion in Q2’22 to over $14.4 billion in Q2’23. By segment, the company’s consumer and community banking business revenue jumped to over $17.2 billion from $12.2 billion in the same quarter in 2022.

The Corporate & Investment Bank revenue jumped to $12.5 billion while the commercial banking business had over $3.9 billion. Assets and wealth management revenue rose to $4.9 billion while its corporate banking revenue rose to $3.7 billion.

JP Morgan recently committed to boosting its dividend after passing its annual stress test by the Federal Reserve. JP Morgan’s stock price surged by more than 3% in the pre-market session. As my colleague wrote, analysts at Jefferies recommended buying JP Morgan stock ahead of earnings.

The post JP Morgan revenue and profits surge as interest rates rise appeared first on Invezz.

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