JPMorgan Chase & Co. reports Q2 net income of $11.9 billion, $3.78 per share

Eren Sengezer FXStreet

JPMorgan Chase & Co. reported on Tuesday that the net income in the second quarter of 2021 was $11.9 billion, or $3.78 per share, per Reuters. Investors were expecting an earning of $3.21 per share with a revenue of $29.97 billion in Q2.

Additional takeaways

"Quarterly reported revenue of $30.5 billion; managed revenue of $31.4 billion."

"Q2 results included $3.0 billion of credit reserve releases firmwide."

"Excluding credit reserve releases, Q2 net income of $9.6 billion."

"Quarterly average loans flat."

"Quarterly tangible book value per share of $68.91."

"Quarterly CCB average loans down 3%."

"Quarterly CCB average deposits up 25%."

JPMorgan's CEO Jamie Dimon noted that they were able to benefit from a significant reserve release in the second quarter as the environment continues to improve.

"Consumer and wholesale balance sheets remain exceptionally strong as the economic outlook continues to improve," Dimon added. "In the first half of 2021, extended credit, raised $1.7 trillion in capital for businesses, institutional clients, US customers."

Market reaction

JPMorgan Chase & Co. (NYSE: JPM) shares are down 1% in premarket following the quarterly earnings figures.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD advaces beyond 1.3450 after BoE decision, US Q2 GDP

GBP/USD gains positive momentum on Thursday, surpassing 1.3450 and trading at fresh multi-week highs. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helped the pair advance, while renewed US Dollar weakness across the FX board pushed the pair further up ahead of the monthly close.

EUR/USD confortable around 1.1530, highest in six weeks

The EUR/USD pair trades around 1.1530 in the American session on Thursday, reaching fresh six-week highs. The US Dollar is in sell-off mode, with multiple factors weighing on the American currency. Not only did the Federal Reserve vote divided to keep rates on hold on Wednesday, creating doubts about a September hike, but US Q2 GDP missed expectations. A suspected JPY intervention adds pressure on the Greenback.

Gold recovers the $4,100 level as US Dollar weakens further

Gold trades just above $4,100 amid a US Dollar sell-off. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew at an annual rate of 1.5%, missing the market's expectations of 2.1%.

Bank of Japan set to keep interest rates unchanged after suspected Yen intervention

Investors are turning their attention to the Bank of Japan’s monetary policy announcement on Friday, after the Japanese Yen staged a dramatic rebound during Thursday's American session. The move came amid growing speculation that Japanese authorities intervened in the foreign exchange market after USD/JPY tumbled from above 163.00 to below 158.00 within minutes.

Aave to sunset Sonic, Aptos, zkSync, Scroll reserves, affecting $98 million in supply

Aave is planning to sunset 75 low-activity reserves across its decentralized finance protocol as part of a broader effort to reduce operational, technical and economic risks across its network of deployments.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.