JPMorgan Posts Record $21.2B Quarterly Profit
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- JPMorgan reported Q2 net income of $21.2 billion ($7.70 per share), up 41% year-over-year and far exceeding the $5.64 EPS analyst consensus, marking the largest quarterly profit ever for a US bank.
- JPMorgan's total net revenue rose 28% to $57 billion, inflated by a $4.6 billion net gain on the sale of Visa shares held by its corporate division and $1 billion in gains on certain equity investments; even excluding those one-time items, net income of $16.9 billion still topped the Street's expectations.
- JPMorgan's equity trading revenue jumped 86% year-over-year to a record $6 billion, while equity underwriting fees surged 78% to $829 million, fueled by fees from SpaceX's IPO and Alphabet's larger follow-on stock sale.
- JPMorgan raised its full-year net interest income guidance (excluding Markets) by $1.5 billion to $96.6 billion, as quarterly NII climbed 10% to $25.5 billion.
- JPMorgan lowered its expected full-year card loan write-off rate to 3.2% from 3.4%, citing a solid labor market and higher tax refunds; combined debit and credit card sales volume rose 10% year-over-year.
- Jamie Dimon warned that risks are 'shifting below the surface like tectonic plates,' citing geopolitical tensions, sticky inflation, large global fiscal deficits, and elevated asset prices — while crediting AI-driven capital investment, fiscal stimulus, and deregulation for the quarter's results.
Why it matters: JPMorgan's record $21.2 billion quarter, powered by 86% equity trading growth and 78% underwriting growth, shows Wall Street's dealmaking and trading arms are directly cashing in on the AI capital-raising cycle. Yet $4.6 billion of the headline profit came from a one-time Visa-share sale, and Dimon's own 'tectonic plate' warning about inflation and elevated asset prices sits in tension with the celebratory framing, suggesting JPMorgan's own CEO doesn't believe conditions this strong are durable.
