JPMorgan Chase & Co. (NYSE:JPM) reported its Q2 earnings on Friday that saw its net income climb to over $7 billion for the quarter and $13.4 billion YTD. This is a year-over-year increase in income of over 13% and is also up 9% over the previous quarter. Despite the impressive increase in earnings, year-over-year revenue saw an increase of only 4.4% while sales were up 3.2% over the previous quarter. One reason for the improvement was a lower income tax expense for the quarter ($2.7 billion versus $3.1 billion last year).
Income before tax was up 4.4%, matching the revenue increase for the quarter. The company’s total expenses went up over 4.5% year-over-year and as result income before tax stayed at approximately 38% of total revenue, in line with last year but up from the previous quarter where it was just under 34%.
A look at the company’s segmented results shows that commercial banking was the driver behind the increase in sales with a revenue increase of 15%, followed by asset & wealth management which was also up 9%. Consumer and community banking was flat year-over-year but up 4% from the previous quarter. Additionally, the company’s corporate segment was actually the biggest improvement in the segments in terms of total dollars, up $962 million, of which $645 million came by way of proceeds from a legal settlement.
Without the benefit of the legal settlement, income before taxes would have only been $9.1 billion and shown a year-over-year drop of 2.5%.
Analysts were expecting an EPS of $1.58 per share which the company beat easily by posting EPS of $1.82.
