JP Morgan's Second-Quarter Net Income Gains

Tom Burroughes

12 July 2024

JP Morgan kicked off the second quarter results season today, announcing that net income in Q2 2024 was $1.81 billion, up 25 per cent on a year earlier.

Revenues, on a reported basis, rose 22 per cent year-on-year to $50.2 billion, the New York-listed bank said in a statement. Noninterest expenses rose 14 per cent to $23.7 billion. Provision for credit losses rose 5 per cent to $3.05 billion.

On the asset and wealth management side, net income rose 3 per cent to $1.26 billion; net revenue rose 6 per cent to $5.252 billion. Assets under management rose 15 per cent, to $3.7 trillion; client assets stood at $5.4 trillion, up 18 per cent.

Noninterest expense was $3.5 billion, up 12 per cent, predominantly driven by higher compensation, including revenue-related compensation and continued growth in private banking advisor teams, as well as higher legal expense and distribution fees. Credit loss provision was $20 million; a year before, it was $145 million.

While the results were broadly positive, CEO Jamie Dimon issued a warning on the global economic and political environment.

“While market valuations and credit spreads seem to reflect a rather benign economic outlook, we continue to be vigilant about potential tail risks. These tail risks are the same ones that we have mentioned before. The geopolitical situation remains complex and potentially the most dangerous since World War II – though its outcome and effect on the global economy remain unknown. Next, there has been some progress bringing inflation down, but there are still multiple inflationary forces in front of us: large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world. Therefore, inflation and interest rates may stay higher than the market expects. And finally, we still do not know the full effects of quantitative tightening on this scale," Dimon said.