JPMorgan Chase (JPM 106.83, -0.03, -0.03%) is little changed after beating quarterly expectations.
The banking giant reported above-consensus second quarter earnings of $2.29 per share on a 9.1% year/year increase in revenue to $27.80 bln, which was also better than expected.
Firmwide average core loans rose 7.0% year/year while core loans in Consumer & Community Banking also increased 7.0%. Consumer & Community Banking average deposits grew 5.0%.
The bank reported a Tier 1 capital ratio of 11.9%, down from 12.5% one year ago, but up from 11.8% in the previous quarter.
Overhead ratio remained unchanged quarter/quarter at 58.0%, but increased by 100 basis points year/year.
Net interest income grew 9.0% year/year to $13.60 bln. Higher rates and loan growth were partially offset by lower Markets net interest income. Non-interest revenue increased 4.0% to $14.70 bln due to higher Markets revenue, investment banking fees, and auto lease income.
Consumer & Business Banking revenue grew 17.2% to $6.13 bln due to higher net interest income resulting from higher deposit margins and growth. Mortgage banking revenue declined 5.5% to $1.35 bln due to margin compression and lower net servicing revenue.
Card, Merchant Solutions & Auto revenue grew 5.6% to $5.02 bln. The growth occurred due to lower Card acquisition costs, higher Card net interest income on margin expansion and loan growth, and higher auto lease volumes.
Provision for credit losses in the Consumer Banking segment declined 20.5% to $1.11 bln. Higher net charge-offs in Card were more than offset by a net recovery in Mortgage Lending due to a loan sale.
In the Corporate & Investment Bank segment, net revenue increased 11.2% to $9.92 bln due to a 12.2% increase in Markets & Investor Services revenue (to $6.47 bln). Banking revenue increased 9.2% to $3.45 bln and non-interest expense grew 10.8% to $5.40 bln.
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