New York, July 14 (AFP/APP): JPMorgan Chase reported a jump in second-quarter profits Friday on surging income tied to higher interest rates as executives described the US economy as “resilient” but facing risks.
Profits were $14.5 billion, up 67 percent from the year-ago period, while revenues were up 34 percent to $41.3 billion. Chief Executive Jamie Dimon said consumers are still spending, but “slowly using up their cash buffers.”
The results were the first to include JPMorgan’s acquisition of First Republic Bank under a government-orchestrated spring auction after the smaller lender suffered a fatal run on deposits.
JPMorgan’s earnings included a $2.7 billion one-time “bargain purchase gain” on First Republic.
But the acquisition also added to JPMorgan’s credit costs in the quarter. The bank added reserves of $1.5 billion in case of bad loans. But excluding First Republic, this figure would have been $326 million, JPMorgan said in its press release.
Dimon expressed cautious optimism about the US economy.
“The US economy continues to be resilient,” Dimon said. “Consumer balance sheets remain healthy, and consumers are spending, albeit a little more slowly. Labor markets have softened somewhat, but job growth remains strong.
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