JPMorgan Chase reported Friday a 67% jump in second-quarter profit as it earned more from borrowers' interest payments and benefited from the purchase of First Republic Bank.
In May, the Federal Deposit Insurance Corporation (FDIC) accepted a bid from JPMorgan to assume all deposits of First Republic Bank. The purchase strengthened JPMorgan’s net interest income (NII), which measures the difference between what banks earn on loans and pay out on deposits.
JPMORGAN CHASE CEO JAMIE DIMON SPEAKS UP ABOUT REMOTE WORK: 'THERE ARE REAL FLAWS'
The bank sees NII of about $87 billion for the full year, higher than the $83.37 billion expected by Wall Street, according to Refinitiv IBES data.
Meanwhile, JPMorgan said that net income attributable to First Republic reached $2.4 billion in the quarter and included an estimated bargain purchase gain of $2.7 billion, and a provision for credit losses of $1.2 billion to establish a reserve for the acquired First Republic lending portfolio.
FIRST REPUBLIC BANK SALE WILL ENSURE THAT ‘BANKING SYSTEM IS SAFE AND SOUND,’ BIDEN SAYS
"Even after the First Republic transaction, we maintained an extraordinarily strong capital ratio of 13.8% and had $1.4 trillion in cash and marketable securities," JPMorgan Chase CEO Jamie Dimon said in a statement.
JPMORGAN CEO AFTER OVERSEAS VISIT: CHINA ‘NOT A 10-FOOT GIANT’
For the quarter ending on June 30, JPMorgan's profit climbed to $14.47 billion, or $4.75 per share, compared with $8.65 billion, or $2.76 per share in 2022.
Dimon also said that the U.S. economy remains resilient.
"Consumer balance sheets remain healthy, and consumers are spending, albeit a little more slowly," he said in a statement. "That being said, there are still salient risks in the immediate view."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Reuters contributed to this report.
