JP Morgan Chase, with CEO Jamie Dimon, unexpectedly drew in a lot on its investment business during the second quarter – a source of revenue that increased by 7 percent. Analysts had expected a decline of 14 percent. And the company's stock traders had their second-best quarter of all time, while the interest rate traders exceeded expectations.
Raising the forecast
The net interest income, what the bank draws in from the difference between deposit and lending rates, was however a disappointment. But for the full year, JP Morgan is nonetheless raising its forecast for net interest income to 95.5 billion dollars – up from 94.5 billion in the previous forecast from May.
Provisions for feared credit losses during the quarter remained at 439 million dollars. Analysts had on average expected 761 million dollars, according to Bloomberg.
Major bank Wells Fargo lowered its full-year forecast for net interest income in a quarterly report at the same time, after a second quarter marked by slow growth in the shadow of the Trump administration's trade war.
The message is pushing down the stock in pre-trading.
More major banks are reporting
During the second quarter, Wells Fargo drew in 11.7 billion dollars from the difference between deposit and lending rates. This can be compared to the average forecast of 11.8 billion.
The forecast for the full year is now a more or less unchanged net interest income. Previously, the forecast was for growth of 1-3 percent.
Major bank Citigroup is also presenting quarterly figures on Tuesday, while competitors Goldman Sachs, Bank of America, and Morgan Stanley will report on Wednesday.
