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JPMorgan Chase (JPM) is trading roughly flat following its Q2 earnings report this morning. The company reported another huge beat on EPS, its sixth consecutive EPS beat of at least $0.24 and third straight above $0.44. Revenue fell 10.5% yr/yr to $44.91 bln, which was a good bit better than expected. The decline was mostly due to a one-time gain related to Visa shares in the year ago period.

• Net interest income, excluding Markets, was $22.8 bln, was down 1%, driven by lower rates and deposit margin compression, predominantly offset by higher wholesale deposit balances and higher revolving balances in Card Services. Noninterest revenue, excluding Markets, was $14.0 bln, down 31%. Excluding the Visa gain, it up 8%.
• JPM noted that each of its lines of business performed well. In the CIB, Markets revenue rose to $8.9 bln as clients navigated volatile market conditions at the beginning of the quarter. Meanwhile, IB activity started slow but gained momentum as market sentiment improved. IB fees were up 7% for the quarter. In CCB, JPM added approximately 500,000 net new checking accounts, which drove sequential growth in checking account balances. In AWM, asset management fees rose 10%, and JPM saw continued client asset net inflows of $80 bln, with client assets crossing over $6.4 trillion.
• In terms of the macro picture, JPM said the US economy remained resilient in Q2. The finalization of tax reform and potential deregulation are positive. However, it also said significant risks persist, including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices.
• The earnings call was generally positive, especially in terms of the macro picture. JPM said it continues to struggle to see signs of weakness in the consumer. The consumer basically seems to be fine now. Delinquency rates are also in line with expectations. JPM noted it kept net charge off guidance unchanged. Real consumer spending in 1H25 vs 2H24 is down but still positive.

The muted reaction in the stock, despite the huge EPS beat, tells us investors have become accustomed to large beats from JPM. The bank was quite positive on the consumer, a bit more optimistic than we had expected. However, JPM did express caution about the impact of tariffs on the US economy, geopolitics and rising fiscal deficits. We suspect that is offsetting some of the excitement about the good numbers.