Shares of JPMorgan Chase & Co. slipped about 2% in premarket trading on Tuesday despite the lender posting stronger-than-expected second-quarter earnings, while Bank of America Corp. gained after delivering a broad earnings beat.
The contrasting moves came ahead of Wall Street's opening bell as investors assessed results from the biggest US banks and looked ahead to management commentary on the outlook for trading, lending and the broader economy.
JPMorgan was scheduled to hold its earnings conference call with analysts at 8:30 a.m. ET.
Bank of America reported earnings per share of $1.21, ahead of analysts' estimate of $1.13, while revenue came in at $31.7 billion, topping the $30.72 billion consensus estimate compiled by LSEG.
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The lender's net interest income rose 9% year-on-year to $16.2 billion, driven by higher loan and deposit balances and strong performance in its global markets business. The figure was broadly in line with the $16.23 billion StreetAccount consensus.
JPMorgan, meanwhile, delivered a standout quarter in investment banking and trading. Equities trading revenue surged 86% to $6 billion, exceeding analysts' expectations by roughly $2.1 billion, while investment banking fees climbed 30% to $3.3 billion, comfortably ahead of the $2.82 billion StreetAccount estimate.
The bank said equity underwriting was particularly strong, underscoring the impact of a busy capital markets environment, including high-profile listings such as the SpaceX IPO.
Fixed-income trading, however, slightly missed expectations. Revenue rose 6% to $6.1 billion, below the $6.22 billion StreetAccount estimate, with weaker commodities trading weighing on the performance.
JPMorgan reported net income of $21.2 billion, up 41% from a year earlier. Excluding one-off gains worth $5.6 billion, including those linked to Visa and other items, earnings growth was about 13%.
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"Performance was strong across the Firm, and revenue in each line of business hit a new record," JPMorgan Chief Executive Officer Jamie Dimon said in the earnings release.
Alongside JPMorgan and Bank of America, Citigroup, Wells Fargo and Goldman Sachs were also due to report quarterly results before the market opened.
Analysts had expected the largest US lenders to benefit from robust equity and fixed-income trading activity during the second quarter, while a pickup in commercial lending and resilient consumer credit trends also supported earnings. The SpaceX IPO was also seen driving a sharp rise in investment banking fees for firms such as Goldman Sachs and Morgan Stanley.
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