Summary
JPMorgan Chase & Co. reported strong financial results for the second quarter of 2017, demonstrating robust performance across its key business segments. Net income rose 13% year-over-year to $7.0 billion, or $1.82 per diluted share, on total net revenue of $25.5 billion, up 4%. This growth was driven by a 7% increase in net interest income, supported by higher interest rates and loan growth, and a 4% increase in noninterest revenue, boosted by a significant legal benefit in the Corporate segment. The firm's return on common equity (ROE) stood at 12%, and return on tangible common equity (ROTCE) was 14%, reflecting improved profitability. The firm maintained solid capital ratios, with a Common Equity Tier 1 (CET1) capital ratio of 12.6% under Basel III transitional rules, exceeding regulatory minimums. Provision for credit losses decreased by 13% compared to the prior year's quarter, indicating improving credit quality, although consumer provisions increased due to higher net charge-offs in the credit card portfolio. Noninterest expense increased by 6%, primarily due to the absence of a prior-year legal benefit and higher FDIC-related expenses, but was managed effectively given the revenue growth.
Financial Highlights
31 data points| Interest Expense | $3.44B |
| Net Income | $7.03B |
| EPS (Basic) | $1.83 |
| EPS (Diluted) | $1.82 |
| Shares Outstanding (Basic) | 3.57B |
| Shares Outstanding (Diluted) | 3.60B |
Key Highlights
- 1Net income increased 13% to $7.0 billion ($1.82 per diluted share) on total net revenue of $25.5 billion, up 4% year-over-year.
- 2Net interest income grew 7% to $12.2 billion, driven by higher interest rates and loan growth.
- 3Noninterest revenue increased 4% to $13.3 billion, aided by a $645 million legal benefit.
- 4Provision for credit losses decreased 13% to $1.2 billion, reflecting an improvement in wholesale credit quality.
- 5Consumer provision for credit losses increased 16% to $1.4 billion, driven by higher net charge-offs in the credit card portfolio.
- 6Noninterest expense rose 6% to $14.5 billion, largely due to the absence of a prior-year legal benefit and higher FDIC-related expenses.
- 7Common Equity Tier 1 (CET1) capital ratio remained strong at 12.6%, exceeding regulatory requirements.