JPMorgan Chase (JPM), the largest bank in the world, has reported that its second-quarter net income rose 67% to $14.5 billion U.S. due to rising income from higher interest rates.
The New York-based bank beat Wall Street estimates across the board, reporting earnings per share of $4.37 U.S. versus $4 U.S. that had been expected, according to Refinitiv data.
JPMorgan’s revenue in Q2 came in at $42.4 billion U.S., compared to $38.96 billion U.S. that was forecast by analysts who cover the bank.
The lender attributed the earnings beat to higher rates and strong loan growth. JPMorgan said its revenue growth was driven by a 44% increase in its net interest income to $21.9 billion U.S.
The amount of loans issued by the lender rose 13% in the quarter, while deposits fell 6%.
JPMorgan acquired troubled bank First Republic earlier this year as that lender was on the verge of collapse. First Republic contributed to JPMorgan’s earnings for the first time in Q2.
The results from JPMorgan kick-off second quarter earnings season in the U.S. Other major American banks are scheduled to report their Q2 results in coming days.
JPMorgan’s stock rose 2.5% in premarket trading on news of the financial results. The bank’s share price is up 38% over the last 12 months and trading at just under $150 U.S. per share.