ii view: JP Morgan reports record revenues aided by strong equity demand

CEO of JP Morgan Jamie Dimon pictured this month. Photo: ANGELA WEISS/AFP via Getty Images.

Second-quarter results to the 30 June

• Adjusted revenue up 15% to $58.02 billion
• Adjusted earnings per share up 17% to $6.14 per share
• Quarterly dividend of $1.50 per share, unchanged from Q1

Chief executive Jamie Dimon said: “The firm reported very strong results in the quarter. These results were the product of a particularly favourable environment with an elevated level of market activity, as well as rigorous execution, years of consistent investment and thoughtful capital deployment.

“The US economy has demonstrated notable resiliency this year, with stronger business investment and hiring. This strength is being supported by several tailwinds, including AI-driven capital investment, fiscal stimulus and the benefits of more efficient regulation.

“However, several risks are shifting below the surface like tectonic plates, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices. We cannot predict how these forces will ultimately play out. They may remain manageable, but they could also cause meaningful disruptions when they shift or collide.”

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ii round-up:

JPMorgan Chase & Co (NYSE:JPM) today upped full-year expectations, aided by record revenues for each of its businesses and against the backdrop of major AI-related fundraising and the stock market debut of Space Exploration Technologies Corp Class A (NASDAQ:SPCX).

Expected full-year 2026 net interest income of $105.5 billion (£79 billion) is up from management’s first-quarter estimate of $103 billion. Adjusted second-quarter revenues to late June up 15% year-over-year to $58 billion helped drive adjusted earnings up 17% from a year ago to $6.14 per share.

Shares in the Dow Jones constituent rose 2% in post-results US trading having come into these latest numbers up by close to a fifth over the last year. That’s similar to the Dow index itself over that time. Shares in restructured rival Citigroup Inc (NYSE:C) have soared by close to two-thirds over the last year.

JP Morgan operates via the three divisions of Commercial and Investment Banking (CIB), Consumer and Community Banking (CCB), and Asset Wealth Management (AWM).

Revenues for CIB soared 27% to $24.9 billion, pushing divisional profit up 46% to $9.7 billion. Investment Banking related fees jumped 30% to the highest level since 2021, aided by strong equity underwriting fees. Equity market-related revenues soared 86% to $6 billion. All three US major indices hit new record highs during the period.

Revenues for CCB climbed 8% to $20.3 billion, assisted by 7% and 10% increases in average deposits and loans and a 3% increase in home lending to $1.3 billion.

An 18% rise in assets under management from a year ago to $5.1 trillion pushed AWM-related profits up 33% to $2 billion.

A quarterly dividend payment of $1.50 per share, payable to eligible shareholders on 31 July, is unchanged from the prior quarter. Third-quarter results are scheduled for 13 October.

ii view:

Formed in the year 2000 via the merger of JP Morgan and Chase Manhattan, the bank today employs over 300,000 people. Geographically, North America generated the most revenue during 2025 at 77%. That was followed by the combined Europe, Middle East and Africa regions at 13%, Asia Pacific at 8%, and Latin America and the Caribbean the balance of 2%. JP Morgan rivals include The Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS) and even UK bank and former buyer of Lehman Brothers’ assets, Barclays (LSE:BARC).

For investors, rising energy costs given renewed Middle East tensions may now pressure consumer disposable incomes, slowing economic activity and required borrowing activity going forward. A full trade deal between the US and China has yet to be agreed with a poor deal potentially bad for US companies and their banks. An estimated price to net value of around 2.5 times sits comfortably above many rivals, suggesting the shares are not obviously cheap, while plans for the eventual replacement of Dimon have yet to be detailed.

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On the upside, the benefits of a diversified business model have regularly seen strong conditions for one division countering challenges at another. The bank has no direct business in China. JP Morgan’s finances remain robust given a capital cushion or CET1 ratio of 14.1%, while more than 10 years of annual consecutive dividend increases leave the shares sat on an estimated future income yield of close to 2%.    

On balance, and despite ongoing risks, this bellwether of the US economy looks to remain worthy of its place in many already diversified investor portfolios.

Positives:

• Business diversity
• Robust balance sheet

Negatives:

• Economic outlook uncertainty
• Heightened wage costs

The average rating of stock market analysts:

Strong hold