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JPMorgan (JPM) Q2 Earnings Beat On Loan Growth, Higher Rates

Rising interest rates and loan growth drove JPMorgan Chase & Co.’s (JPM - Free Report) second-quarter 2017 earnings of $1.82 per share, which easily surpassed the Zacks Consensus Estimate of $1.57. Also, the figure reflects a 17% rise from the year-ago period. Notably, the results included a legal benefit of $406 million.

Solid loan growth and higher interest rates supported net interest income. Further, investment banking fees recorded a rise. Apart from these, results were supported by a fall in provision for credit losses, mainly driven by reserve releases in the Oil & Gas loan portfolio.

As expected, fixed income and equity trading slumped during the quarter. Also, fall in mortgage banking income, due to higher funding costs and decline in mortgage origination volume, was a headwind. Operating expenses reported a rise during the quarter.

Shares of JPMorgan lost over 1.9% in the pre-market trading. Perhaps, lesser support on the expense front and lower mortgage fees led to investors’ bearish stance. Nonetheless, the actual picture will emerge in the full day’s trading session, with investors and analysts considering the core results.

The overall performance of JPMorgan’s business segments, in terms of net income generation, was decent. All segments, except...