Summary
JPMorgan Chase & Co. reported strong financial results for the second quarter of 2019, with record net income of $9.7 billion, or $2.82 per diluted share, driven by a 4% increase in total net revenue to $28.8 billion compared to the prior year quarter. This robust performance was supported by a 7% rise in net interest income, benefiting from balance sheet growth and higher rates, and a 1% increase in noninterest revenue, boosted by a strategic investment gain in Tradeweb and a prior-year adjustment to credit card rewards liability. Despite a 2% increase in noninterest expense, primarily due to investments in technology and growth initiatives, the company maintained strong profitability with a Return on Common Equity (ROE) of 16% and a Return on Tangible Common Equity (ROTCE) of 20%. The firm also demonstrated continued strength in its capital position, with a Common Equity Tier 1 (CET1) ratio of 12.2%, well above regulatory requirements. Tangible Book Value Per Share (TBVPS) grew 8% to $59.52. The firm's Consumer & Community Banking (CCB) segment was a significant contributor, with net income up 22% year-over-year, driven by strong performance in card services and deposit growth. The Corporate & Investment Bank (CIB) saw a decline in net income, impacted by lower investment banking fees and weaker Markets revenue, though it maintained its #1 global ranking in investment banking fees. Management provided a positive outlook for the full year 2019, expecting net interest income between $57.5 billion +/- and adjusted expenses below $66 billion, while anticipating continued low charge-off rates.
Financial Highlights
32 data points| Interest Expense | $7.21B |
| Net Income | $9.65B |
| EPS (Basic) | $2.83 |
| EPS (Diluted) | $2.82 |
| Shares Outstanding (Basic) | 3.25B |
| Shares Outstanding (Diluted) | 3.26B |
Key Highlights
- 1JPMorgan Chase reported record net income of $9.7 billion ($2.82 per diluted share) for Q2 2019, a 16% increase year-over-year.
- 2Total net revenue increased by 4% to $28.8 billion, driven by a 7% increase in net interest income and a 1% increase in noninterest revenue.
- 3The Consumer & Community Banking (CCB) segment showed strong growth, with net income up 22% to $4.2 billion.
- 4The Corporate & Investment Bank (CIB) segment experienced a 14% decrease in net income to $2.9 billion, impacted by lower investment banking fees and a decline in Markets revenue.
- 5Provision for credit losses decreased by 5% to $1.1 billion.
- 6The firm maintained a strong capital position with a CET1 ratio of 12.2%.
- 7JPMorgan Chase announced its Board's intention to increase the quarterly common stock dividend to $0.90 per share, effective Q3 2019, and authorized new common equity repurchases of up to $29.4 billion.