JPMorgan Chase beat estimates for second-quarter profit on Friday as a resurgence in dealmaking and strong capital markets fueled record results, reports Reuters.
More companies are seeking to raise funds through debt or equity offerings and striking takeover deals as they gain confidence in the US economic outlook, helping to boost Wall Street banks' income.
Investment banking revenue grew 46 per cent to $2.5 billion, compared with a low base a year earlier. The gains exceeded the company's earlier predictions.
The Wall Street operations even propelled overall profits to an all-time high. JPMorgan also benefited from a one-time accounting gains on transactions related to payments network Visa.
Despite the strong results, CEO Jamie Dimon maintained caution about the economic outlook.
"While market valuations and credit spreads seem to reflect a rather benign economic outlook, we continue to be vigilant about potential tail risks," Dimon said in a statement, adding that the risks included a changing geopolitical situation, which remains the most dangerous since World War II.
Inflation and interest rates may stay higher than market expectations due to threats like large fiscal deficits and restructuring of trade, he added.
Dimon, who typically speaks on conference calls with journalists and analysts about earnings, was absent on Friday because of travel commitments, the company said. The departure was a one-off, it said.
Commercial and investment banking revenue during the first half rose to $35.5 billion, the highest ever, the bank said.
JPMorgan profit rises to record, fuelled by investment banking
FE Team | Published: July 14, 2024 23:47:28
JPMorgan profit rises to record, fuelled by investment banking
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