JPMorgan Chase Q2 2024 Results

JPMorgan Chase reported another strong quarterbut CEO Jamie Dimon he repeated his warnings about a number of risks to which the bank remains vigilant.

The largest U.S. bank by assets posted net income of $18.1 billion, or $6.12 per share, up 25% from $14.5 billion in the same period last year, the bank said in its report. second quarter earnings report Friday. Wall Street analysts had forecast $17.3 billion in profit, or $5.88 in earnings per share, according to FactSet.

The company posted revenue of $50.2 billion in the three months ended June 30, topping analysts’ expectations of $42.23 billion, according to data compiled by FactSet.

The global bank improved in several areas, giving it a big boost. Investment banking fees rose 50% and its market share rose to 9.5%. It also reported $7.9 billion in new Visa shares.

Despite the good results, President Dimon once again reiterated warnings about geopolitical and macroeconomic challenges.

“While market valuations and credit spreads appear to reflect a benign economic outlook, we remain vigilant about potential edge risks,” he said in a statement. “These edge risks are the same ones we have discussed before. The geopolitical situation remains complex and potentially the most dangerous since World War II — although its outcome and impact on the global economy remain unknown.”

“There has been some progress in lowering inflation since then, but there are still a number of inflationary forces ahead: large fiscal deficits, infrastructure needs, trade restructuring, and global rearmament,” he continued. “That’s why inflation and interest rates could remain higher than the market expects. Finally, we still don’t know the full implications of quantitative tightening on this scale.”

JPMorgan shares fell 1% in premarket trading on Friday.

There were no major concerns about the banking giant’s ability to survive higher interest rates for an extended period of time, with rates likely to remain at their current 5.25% to 5.5% levels for at least a few months as the central bank waits to deliver what could be its only rate cut this year. JPMorgan reported net interest income of $22.9 billion, up 4% year-on-year.

With $3.7 trillion in assets under management as of June 30, up 15% year over year, the bank continued to widen the gap between itself and other U.S. banking giants. Last year, it had its best year on record, with $49.6 billion in profit including $4.1 billion in profit from the acquisition of bankrupt First Republic Bank in May 2023.

This is the first quarter that JPMorgan has released full results without breaking out First Republic’s contributions on its balance sheet, and its results are now comparable with those of the prior year.

Late last month, JPMorgan announced I plan to raise quarterly common stock dividend to $1.25 per share, up from $1.15 per share, in the third quarter of 2024. The board of directors also approved a new $30 billion common stock repurchase program, which began July 1. Dimon said the increase is supported by JPMorgan’s “strong financial performance” and represents a sustainable dividend level.

The bank said its capital ratio is 15.3%, which allows it to protect itself with excess capital given potential new capital requirements that could come into effect by mid-2025, following the results of the Federal Reserve’s report annual bank stress testJPMorgan said it could suffer greater losses than the central bank has disclosed. As a result, the capital ratio requirement for banks “would likely be slightly higher” at 12.3%, compared with the current level of 11.9%.