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JPMorgan Chase earnings boosted by loan, deposit growth
[NEW YORK] Strong loan and deposit growth helped boost JPMorgan Chase's second-quarter earnings in results released Wednesday, despite heightened uncertainty in global markets.
Earnings for the quarter ending June 30 were US$6.2 billion, down 1.4 per cent from the same period last year. That translated into US$1.55 per share, 12 cents above expectations.
Revenues rose 2.7 per cent to 25.2 billion.
Chief executive Jamie Dimon pointed to growth in several key areas including consumer deposits, credit card sales, merchant processing volume and core and total loans.
"Throughout the recent uncertainty and turbulence in the markets, we continued to be there for our clients," he said.
The bank's corporate and investment bank division reported a robust 35 per cent gain in the volatile fixed income trading area, which helped to offset lower fees in equity underwriting.
On the downside, the bank set aside US$1.4 billion for credit losses, up nearly 50 per cent from last year, due in part to higher losses tied to new credit cards.
The bank also said it boosted reserves for oil and gas, although it described overall credit conditions in that area as "somewhat more stable" than in previous quarters.
Shares of JPMorgan gained 1.7 per cent to US$64.25 in pre-market trade.