NEW YORK (AP) — JPMorgan Chase’s second-quarter profits rose by 18 percent from a year ago, as the nation’s largest bank continues to benefit from higher interest rates and a lower tax bill following last year’s passage of President Donald Trump’s tax law.
JPMorgan said Friday that it earned $8.32 billion in the first quarter, or $2.29 a share, up from $7.03 billion, or $1.82 a share, in the same period a year earlier. The results from the New York-based bank beat analysts’ expectations for earnings of $2.22 a share.
Like in the first quarter, JPMorgan benefited greatly from a much lower tax bill compared to a year earlier. While pretax profits rose by $823 million, saw its tax bill drop by roughly 17 percent in the quarter compared to a year earlier. The bank’s effective tax rate was 21 percent, compared with 28 percent in the prior quarter.
JPMorgan also continued to benefit from the growth of the U.S. economy and good health of the U.S. consumer. The bank grew loans and assets, and with higher interest rates, was able to charge borrowers more money. Net interest income for the bank was $13.65 billion, up 9 percent from a year earlier. This is despite the bank paying depositors more to keep their assets at the bank.
“We see good global economic growth, particularly in the U.S., where consumer and business sentiment is high,” said Jamie Dimon, JPMorgan’s chairman and CEO, in a statement.
Source: AP News