JPMorgan Chase’s Wall Street units posted robust growth in the second quarter as chief executive Jamie Dimon said the US economy remains “resilient” despite the risks posed by Donald Trump’s tariffs and the country’s worsening fiscal outlook.
The biggest US bank by assets said on Tuesday that trading revenues jumped 15 per cent from the year prior to $8.9bn, driven by activity in currency, bond, commodity and equity markets. Investment banking fees rose 7 per cent to $2.5bn.
JPMorgan also signalled US borrowers are holding up better than analysts feared in the early months of the White House’s global trade war. The bank reported provisions to cover potential bad loans of about $2.8bn in the second quarter, less than the $3.2bn analysts polled by Bloomberg forecast.
Dimon said the US economy remained “resilient” in the June quarter. He welcomed the passage of Trump’s flagship budget bill and also said potential deregulation would be “positive for the economic outlook”.
“[H]owever, significant risks persist — including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,” he said.
JPMorgan also lifted a key earnings target for its lending businesses for 2025.
The bank raised its outlook for net interest income — the difference between what the bank pays on deposits and what it earns from loans and other assets — to about $95.5bn in 2025, from around $94.5bn previously. The metric has benefited substantially from higher interest rates in the US since 2022.
The group’s net income in the quarter fell to $15bn, down 17 per cent from a year earlier. Last year it benefited from a roughly $8bn one-off gain from its stake in Visa. Analysts had forecast profits for the latest quarter of $12.8bn.
BlackRock earlier said that assets under management climbed to a record $12.5tn in the second quarter, as a market rally and currency swings helped overcome lower than expected inflows.
Citigroup is still set to report before the market opens in New York.
