JPMorgan Chase (NYSE: JPM) on Friday reported second-quarter earnings that beat on the top and bottom line as strong lending results offset declines in trading.
Earnings per share came in at $1.82 versus $1.58 estimated by analysts' consensus. Revenue registered at $26.41 billion versus $24.96 billion.
Shares moved lower $1.66, or 1.8%, to $91.44 mid-morning Friday after whipsawing in pre-market. In addition to the concerns about lending income, traders believed much of the strong results were already priced into the stock. Shares hit an all-time high on July 6 and are up nearly 8% this year.
The bank lowered its net interest income forecast for the year by about half a billion dollars to a $4-billion increase from the prior year. The second quarter results also included a $406-million after-tax benefit from a legal settlement.
During 2016’s second quarter, the bank reported earnings of $1.55 per share on revenue of $25.2 billion.
Average loans in consumer and community banking rose 3% from last year, while core loans climbed 9%.
For the rest of the year, JPMorgan said it expects average core loan growth to rise 8%.
However, overall market trading revenue declined 14% year on year.
JPMorgan said in late June it authorized share buybacks of up to $19.4 billion through June 30, 2018, its largest since the financial crisis.
JPMorgan and 33 other big banks passed the second round of the Federal Reserve's annual stress tests in late June when the central bank did not object to their capital return plans.