The world’s largest bank, JP Morgan Chase, has announced the highest quarterly profit ever recorded by a United States bank, driven by booming investment banking activity, record trading revenue and resilient consumer demand.
The bank reported net income of US$21.2 billion (A$30.4 billion), or US$7.70 per share, for the three months ended June 30, comfortably exceeding analysts' expectations and 41% and 47% ahead of the previous corresponding period net income and earnings per share, respectively.
This was on revenue which climbed 28% to US$57.35 billion, also well ahead of market forecasts.
The results marked the strongest quarterly profit ever reported by a U.S. bank, driven by a sharp rebound in mergers and acquisitions, equity capital markets activity and elevated trading volumes amid volatile financial markets.
Investment banking fees surged 30% to $3.3 billion, their highest level since 2021, as a resurgence in initial public offerings and corporate dealmaking boosted advisory income.
JPMorgan played lead roles in several landmark transactions during the quarter, including SpaceX's public listing and other multi-billion-dollar capital raisings.
Equities trading revenue jumped 86% to a record $6.03 billion while total markets revenue rose 35% to an all-time high of US$12.1 billion as clients increased trading activity during a volatile 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,” Chief executive Jamie Dimon said in a press release.
He said performance was strong across the firm with revenue in each line of business hitting new records.
JPMorgan Chase shares (NYSE: JPM) closed $8.36 (2.50%) higher at $342.89 on Tuesday (Wednesday AEST), capitalising the bank at $918.78 billion.
