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On Tuesday, JPMorgan Chase reported second-quarter profit that beat analyst expectations.

On Tuesday, JPMorgan Chase reported second-quarter profit that beat analyst expectations, according to CNBC.

JPMorgan's trading revenue helped the firm beat expectations. The bank posted earnings of $4.69 billion, or $1.38 a share. Analysts expected the bank to post $1.04 per share. Revenue was reported at $33 billion, greater than the $30.3 billion estimates. “Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy,” CEO Jamie Dimon said. “However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm.”

JPMorgan Chase & Co., the biggest U.S. bank by assets, is the first of the large financial firms to report quarter 2 earnings. Shares rose on Tuesday. Investors were looking for insight into how the coronavirus crisis is affecting the financial sector. The firm has set aside $8.9 billion for loan defaults expected in the near future, which hurt earnings coming out of the retail bank.

Trading revenue jumped 79 percent to $9.7 billion, especially from fixed-income trading. Bond traders posted revenue of $7.3 billion, a 120 percent increase from a year earlier. Analysts were only expecting $5.84 billion from fixed-income trading revenues. Equities traders posted revenue of $2.4 billion, also beating the $2.07 billion estimate.

However, the retail banking business reported a $176 million loss, compared to a $4.2 billion profit a year earlier. High unemployment numbers are being closely watched as key metrics to determine if consumers will be able to repay debts.

Banks stocks are still down significantly from their pre-covid highs. Low-interest rates affecting revenues and shrinking loan books have played into the lack of demand for the shares.

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Economics, Finance and Investing

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