JPMorgan Chase (JPM) beat analyst expectations in the second quarter, delivering second-quarter earnings of $1.54 per share, up from $1.46 a share in the year-earlier period, despite revenue falling to $24.5 billion from $25.35 billion a year ago.
Net income was $6.3 billion, up 5%.
Revenue was $24.5 billion, down 3%, driven by lower mortgage banking revenue and lower CIB Markets revenue related to business simplification, partially offset by growth in Asset Management.
Noninterest expense was $14.5 billion, down 6%, driven by business simplification, lower legal expense and lower mortgage banking expense.
“Our company had strong results this quarter, and each of our businesses performed well, with broad and consistent underlying growth,” said Jamie Dimon, Chairman and CEO. “This quarter was another example of the power of our platform and risk discipline, and of being there for our clients – as we always are – in good times and in volatile markets.
“We are focused on executing on our commitments and we’ve made good progress this quarter, including meeting regulatory requirements, reducing non-operating deposits, and adding to our capital," Dimon said.
The provision for credit losses was $935 million, up 35%, despite lower net charge-offs, due to lower reserve releases compared with the prior year. In the current quarter, consumer reserve releases of $324 million were largely offset by an increase in reserves across the wholesale businesses of $252 million driven by select downgrades, including Oil & Gas.
Mortgage Banking net income was $584 million, a decrease of 20%. Net revenue was $1.8 billion, a decrease of 21%, driven by lower net servicing revenue and lower repurchase benefit.
Net revenue increased 5% from the prior quarter, driven by higher MSR revenue. Noninterest expense was $1.1 billion, a decrease of 15%, due to mortgage efficiencies.
The provision for credit losses was a benefit of $219 million, compared with a benefit of $188 million in the prior year, reflecting lower net charge-offs.