JPMORGAN: 'The U.S. consumer remains healthy'

JPMorgan Chase (JPM) CEO Jamie Dimon continues to remain upbeat on the state of the U.S. economy and the overall health of the consumer.

“The U.S. consumer remains healthy, evidenced in our strong underlying performance in Consumer & Community Banking. Loans and deposits continue to grow strongly, and card sales and merchant processing volumes were up double digits, reflecting our consistent investment in the business,” Dimon said in the bank’s earnings release.

Dimon characterized the global economy as “stable to improving.”

The largest U.S. bank by assets, JPMorgan kicked off second-quarter earnings season on Friday reporting earnings per share of $1.82, beating analysts estimates of $1.58. Reported revenue for the second quarter came in at $25.5 versus analysts’ expectations of $25.44 billion, according to data compiled by Bloomberg.

JPMorgan Chase CEO Jamie Dimon

Firm-wide, the bank saw its average core loans jump 8% from the quarter a year prior and 2% from the first quarter of 2017.

In the consumer bank, there were 28.4 million active mobile customers in the quarter, up 14% from the same period a year ago. Average deposits were up 10% year-over-year. Credit card sales volume also increased 15%, while merchant processing grew 12% from the same quarter a year prior.

Elsewhere, trading activity was lighter as analysts had expected. Fixed income trading revenue came in at $3.2 billion, down 19% compared to the same quarter a year ago driven by low volatility and tighter credit spreads. Equity trading revenue was $1.6 billion, down 1% year-over-year.

“Markets revenue was down amid lower volatility and client activity,” Dimon said.

Meanwhile, revenues from investment banking jumped 14% year-over-year to $1.7 billion. The bank maintained its No. 1 position for investment banking fees in the quarter. Revenue from treasury services rose 18% to $1.1 billion driven by higher interest rates. Lending revenue jumped 35% from a year ago to $373 million.

Citigroup (C) and Wells Fargo (WFC) also report results on Friday.


Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.