NEW YORK: JPMorgan Chase & Co.’s second-quarter profit rose 4 percent as the bank made up for lower revenue by cutting expenses.
The largest US bank by assets said that it earned $5.78 billion, or $1.54 a share, in the latest quarter, up from $5.57 billion, or $1.46 a share, a year earlier. Net revenue totaled $23.81 billion, down from $24.68 billion.
Revenue at three of the four JPMorgan businesses fell or was flat.
The only business where it grew was asset management.
But as revenues declined, JPMorgan was able to compensate by cutting expenses, reducing headcount, and through a $330 million gain as its corporate tax rate fell. Barclays’ analysts said the tax benefit was the main driver behind the bank’s ability to beat Wall Street expectations of $1.43 a share.
At JPMorgan’s investment bank, net income rose 10 percent as lower expenses offset revenue declines both in its trading and investment banking advisory business.
In consumer banking, net income edged up 1 percent, helped by higher sales and loan growth in its auto and credit card division, as well as reduced expenses.
JPMorgan and other banks have been trimming their balance sheets and selling off businesses for several years. Headcount at the bank was 237,459, down 3 percent from a year earlier.
Legal expenses, which had been a major issue during the past few years, also declined.
JPMorgan is one of the first big US banks to announce earnings, along with Wells Fargo, which reported results that matched analysts’ estimates earlier. Like JPMorgan, revenue at Wells Fargo was lower.
JPMorgan Q2 profit rises 4% as bank trims expenses
