JPMorgan Chase, the largest U.S. bank by assets, reported quarterly profits and revenue that topped analysts’ expectations as the lender released money that had been set aside for loan losses.
The bank posted second-quarter earnings of $11.9 billion U.S., or $3.78 U.S. per share, exceeding the $3.21 U.S. estimate of analysts surveyed by Refinitiv. Revenue of $31.4 billion U.S. exceeded the $29.9 billion U.S. estimate of analysts.
After the entire U.S. banking industry set aside tens of billions of dollars to cover loan losses last year, lenders are now releasing those reserves as borrowers have held up better than expected.
JPMorgan Chase posted a $2.3 billion U.S. benefit in the second quarter from releasing $3 billion U.S. in loan loss reserves after taking $734 million U.S. in charge-offs. The bank had a $5.2 billion reserve release in the first quarter.
A surge in investment banking revenue from deal making also gave the bank’s quarterly earnings a boost. Shares of JPMorgan have climbed 24% so far this year to $158 U.S., exceeding the $17% rise of the S&P 500 Index.
