new York The largest US bank, JP Morgan, also benefited greatly in the second quarter from the sharp rise in interest rates and the resulting significantly higher income from the lending business. In addition, the business with bonds, shares and commodities was better than expected by experts.
“Almost all of our divisions grew in the quarter,” Bank chief Jamie Dimon said. “The US economy remains robust. Consumer balance sheets are healthy and they are spending, albeit at a slightly slower pace.”
All in all, the surplus in the three months to the end of June climbed 67 percent year-on-year to $14.5 billion (13 billion euros), the bank announced on Friday in New York. Earnings increased by a good third to $41.3 billion – and thus at an even faster pace than at the start of the year. JP Morgan thus beat analysts’ estimates for both stocks.
In addition, JP Morgan continued to play the takeover of the collapsed First Republic Bank in the cards. The acquisition added about $2.7 billion to the increased profit.
The major bank also once again raised its forecast for net interest income outside of business with large companies and in investment banking in the current year. The stock rose premarket.
Higher interest rates boost Wells Fargo’s profits
The major US bank Wells Fargo also jumped in profits in the second quarter due to increased interest payments from customers. The fourth largest US bank also raised its forecast for net interest income.
The US economy continues to perform better than many expected. Wells Fargo boss Charlie Scharf
This had increased in the second quarter compared to the previous year by 29 percent to 13.16 billion dollars. For the year as a whole, it will be around 14 percent higher than in 2022, the money house announced on Friday. Previously, it had targeted an increase of ten percent. The San Francisco bank’s surplus climbed to $4.94 billion from $3.14 billion a year earlier.
“The US economy continues to develop better than many expected,” said Wells Fargo boss Charlie Scharf. Still, the bank increased its loan default provisions to $1.7 billion from $580 million a year earlier.
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