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JPM: JPMorgan Profits Jump 25% to Record $18.1B Thanks to Big Gain on Visa Stake

Key points:
  • JPMorgan profits rise to record $18.1B.
  • Exchange of Visa shares nets $8B gain.
  • JPMorgan stock closes 1.2% lower.
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US banking giant pocketed $8 billion from converting Visa ownership into common stock. Without this, profits fell.

  • JPMorgan JPM profits skyrocketed to a record $18.1 billion in the second quarter but if you look closely, there was an unusual profit driver that lifted the bottom line. The banking heavyweight revealed its financials for the three months to June, showing a 25% jump in profits thanks to $8 billion in gains from the firm’s stake in credit card network Visa, which got converted into common stock. Without this move, profits arrived at $13.1 billion, down from $14.5 billion a year ago.
  • Other key metrics — JPMorgan reported earnings per share of $6.12, surpassing analyst estimates of $5.88. Revenue for the largest American bank by assets landed at $50.2 billion, up 22% from last year’s quarter and comfortably beating consensus calls for $42.23 billion. Net interest income, or how much the bank makes on loans after paying yields on deposits, rose to $22.9 billion, up 5% from the spring quarter of 2023.
  • “While market valuations and credit spreads seem to reflect a rather benign economic outlook, we continue to be vigilant about potential tail risks,” JPMorgan chief executive Jamie Dimon said in a statement. JPMorgan stock jumped over 2% in early trading Friday but as the session progressed, investors pulled back and shares closed lower by 1.2%. On the year, the stock is up a hefty 19%, trading at $204.94 a pop.