The world’s largest bank, JP Morgan Chase, has announced a 17% fall in net income to US$14.987 billion (A$22.99 billion) in the second quarter of the 2025 financial year.
The result was undermined by the absence of a $7.9 billion gain related to an exchange of shares in the Visa card services business in the previous corresponding period and was despite a $774 million income tax benefit, which was treated as a significant item.
The fall was struck on an 11% drop in net revenue to $44.912 billion and, although earnings per share (EPS) were above analysts’ expectations, the share price fell.
JPMorgan Chase said net income increased for all business divisions except Corporate, where it dived 75% due mostly to the Visa shares gain.
It said net interest income excluding its Markets business edged down 1% as a result of lower interest rates and deposit margin compression, offset by higher wholesale deposits and Card Services balances and securities activity.
Non-interest revenue excluding Markets dived 31% but, without the Visa gain and securities losses in the prior year, it rose 8%.
Chairman and CEO Jamie Dimon said JPMorgan Case reported another quarter of strong results.
“Each of the lines of business performed well,” Dimon said in a media release.
Markets revenue in the Commercial & Investment Bank (CIB) business increased 15% to $8.9 billion as the bank supported clients as they navigated volatile market conditions at the beginning of the quarter.
Investment Bank activity started slowly but gained momentum as market sentiment improved, with fees rising 7% for the quarter, while 500,000 new accounts drove growth in checking account balances in Consumer & Community Banking.
Asset management fees rose 10% in Asset & Wealth Management as net inflows of $80 billion pushed client assets past $6.4 trillion.
The Card business made strong new acquisitions and received positive early reactions to its refreshed Sapphire Reserve and new Sapphire Reserve for Business cards.
EPS excluding one-off costs were $4.96 in Q2, compared with the estimate of $4.48 from analysts polled by LSEG.
Shares in JP Morgan Chase (NYSE: JPM) closed $2.15 (0.74%) lower at $286.55, capitalising the bank at $796.35 billion, before falling to $285.80 in after-hours trading.
