Morgan trumpets earnings beat

JP Morgan Chase & Co. (NYSE: JPM) made eyes pop Friday morning with the release of its second-quarter 2018 financial results.

Morgan, the biggest U.S. lender by assets, posted record Q2 profit of $8.32 billion, exceeding estimates as it posted stronger-than-expected trading results.

Profit surged 18%, clobbering analysts estimates for a 9.4% increase. Earnings per share proved to be $2.29 in the quarter, beating the $2.22 estimate. It was the 14th straight quarter that the firm beat analysts' estimates, according to Barclays analysts. The company's revenue increase was less stark, rising 6% to $28.4 billion.

In the firm's trading division, led by co-President Daniel Pinto, markets revenue rose 13% to $5.4 billion, exceeding analysts' estimates by a half billion dollars.

J.P. Morgan said at the end of May that it expected revenue from its trading division to be about flat from the year earlier because of several one-time charges, including a $100-million hit related to a tax-oriented fixed-income unit. Analysts had expected bond and stock trading of $4.88 billion, according to experts.

The bank's traders exceeded expectations in both fixed income and equities departments. Bond trading generated $3.5 billion in revenue, compared to the $3.18 billion estimate, on strength across product lines and improved commodities revenue, J.P. Morgan said

Stock trading yielded $2 billion in revenue, compared to the $1.7 billion estimate, fueled by derivatives and prime brokerage results.

J.P. Morgan is the first major lender to report earnings, giving investors a glimpse into how the finance industry's Wall Street and Main Street businesses fared in the quarter.

Shares began Friday down a penny to $106.84