Associated Press Business Writer Matt Ott
WASHINGTON (AP) – JPMorgan’s second quarter profit fell to $15 billion in the second quarter, but the Bank of New York has beaten Wall Street’s expectations. CEO Jamie Dimon on Tuesday touted another strong performance in the banks, particularly the market sector. There, revenues rose 15% to $8.9 billion.
JPMorgan won an adjusted $5.24 per share over the period, with a $4.48 analyst falling from $6.12 per share last year. JPMorgan won $4.96 per share during the period, excluding items at once.
Bank profits have dropped significantly from the same period a year ago, as JPMorgan acquired $7.9 billion worth of holdings on Visa in the second quarter last year.
Dimon said the US economy remained resilient in the second quarter, highlighting the possibility of tax reform and more deregulation. However, he noted that many risks remained, including trade uncertainty, geopolitical conflicts and federal deficits.
“While the final decision on tax reform and potential deregulation is positive for the economic outlook, there will be significant risks, including uncertainty in tariffs and trade, worsening geopolitical conditions, high financial obstacles and rising asset prices,” Dimon said in his prepared remarks.
Dimon often places emphasis on global and economic issues beyond the scope of banking. He is considered a banker that Washington and Global leaders can turn to for solicitation or unsolicited seeking advice. His comments tend to echo through Washington and Corporate America.
JPMorgan’s net interest income, the difference between interest on interest in which banks engage in their loan portfolio and customer deposit payments rose 2% to $23.3 billion. That was a little below expectations.
The country’s biggest banks have benefited from higher interest rates over the past two years, but many analysts have hoped the Federal Reserve would cut benchmark loan rates up to two times this year.
However, another report on Tuesday showed that US inflation rose to the highest levels between February and June as President Donald Trump’s drastic tariffs pushed up the costs of the range of goods. Higher inflation could bolster the Federal Reserve’s unwillingness to cut short-term interest rates that Trump has been demanding loudly.
Large US banks and their shareholders could continue to benefit from dial-down restrictions under the Trump administration. This applies especially to the amount of cash that banks reserve in the event of a decline in capital requirements or economic disaster.
Last month, all major banks passed the annual “stress test” for the financial system’s federal reserve system, but the tests conducted by central banks have not been significantly more active than in the past few years.
The Fed said it had been doing it with a milder test as the global economy has been weakening since last year, and testing tends to weaken.
A lower capital requirement leaves far more cash in the bank. They often raise dividends and use them to buy back shares in their own stock.
JPMorgan, among other banks, raised its dividends and bought back more than $7 billion in shares in the last quarter.
JPMorgan said it held $1.5 trillion in cash and marketable securities as of the end of the second quarter.
JPMorgan’s total managed revenue reached $45.7 billion, down from last year’s $51 billion. Wall Street was expecting revenues of just under $44 billion.
JPMorgan’s shares were virtually flat before the bell on Tuesday, but the broader US market rose modestly.
Wells Fargo also reported second-quarter revenue early Tuesday, breaking Wall Street’s profit and revenue targets. Wells posted net profit of $5.5 billion over the period. This earned $1.60 per share, breaking $1.33 from the same quarter a year ago with the expected $1.41 analyst.
However, investors were disappointed by the Bank of San Francisco’s outlook, particularly its sorted net interest income guidance, with its shares falling 3.6% in pre-market trading.
Citigroup broke Wall Street forecasts on Tuesday, earning $1.96 per share with $21.7 billion in revenue. Analysts had forecast a profit of $1.61 per share against $21 billion in revenue.
Citi said it had returned $3 billion in capital to shareholders in the last quarter, including $2 billion worth of share buybacks. City’s shares rose 2.6% before Bell.
Original issue: July 15th, 2025 9:33am EDT
