 "JPMorgan")
JPMorgan Chase & Co's quarterly profit topped Wall Street's expectations on Friday, driven by much higher-than-expected trading revenue and increased loan demand.
US banks are benefiting from a cut in corporate tax rates, hikes in interest rates and a growing economy that is driving demand from borrowers while holding down loan loss rates. Trading got a boost from increased volatility in the wake of escalating trade tensions between the United States and China.
"We see good global economic growth, particularly in the US, where consumer and business sentiment is high," Chief Executive Officer Jamie Dimon said.
JPMorgan's income rose to $8.32 billion, or $2.29 per share, in the second quarter ended June 30, from $7.03 billion, or $1.82 per share, a year earlier.
Analysts expected the bank to earn $2.22 per share, according to Thomson Reuters I/B/E/S.
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Revenue rose 6.5 per cent to $28.39 billion, topping the average estimate of $27.36 billion.
Equity trading revenue rose 24 per cent, while revenue from bond trading was up 7 per cent.
In May, the bank's corporate and investment bank chief Daniel Pinto said second-quarter markets revenue was likely to be flat compared with a year earlier.
Net interest income rose 10 per cent as the US Federal Reserve raised benchmark interest rates four times since the second quarter of 2017.
Average core loans, excluding commercial investment banking, were up 7 per cent, the company said. The company's income tax expense fell 17 per cent to $2.26 billion.
The company's shares were up slightly in premarket trading.
Citigroup Inc and Wells Fargo & Co, the third- and fourth-largest banks by assets, are also set to report results on Friday.
