Home / Business / UPDATE 1-JPMorgan beats estimates on Fed rate hikes, loan growth

UPDATE 1-JPMorgan beats estimates on Fed rate hikes, loan growth

(Adds details, shares)

July 14 (Reuters) – JPMorgan Chase Co, a biggest
U.S. bank by assets, reported a better-than-expected quarterly
profit on Friday as gains from aloft seductiveness rates and loan
growth some-more than equivalent a dump in bond trading.

Trading income fell for a initial time in 5 buliding as
volatility strike multi-year lows, though a dump was not as bad as
expected by a association executive in a run-up to a results.

Executives during large banks warned in new weeks that trading
revenue for a entertain would be down from a year earlier, when
client trade surged around UK’s Brexit vote.

The entertain benefited from a Federal Reserve raising
interest rates for a second time this year in June. The target
range for overnight seductiveness rate now stands during 1 percent to
1.25 percent, compared with 0.25 percent to 0.50 percent a year
earlier.

“We continued to post really plain formula opposite a stable-to
improving tellurian mercantile backdrop. The U.S. consumer remains
healthy,” Chief Executive Jamie Dimon, 61, pronounced in a statement.

The bank’s net income rose 13.4 percent to $7.03 billion in
the second entertain finished Jun 30. [http://bit.ly/2tQ630n
]

Excluding a benefit from a authorised settlement, a association earned
$1.71 per share, compared with analysts’ normal guess of
$1.58 per share, according to Thomson Reuters I/B/E/S.

Markets income fell 14 percent, led by a 19 percent
decrease in bound income markets income to $3.22 billion.

Mortgage lending continued to be a dim mark in a bank’s
results as aloft seductiveness rates kept borrowers from
refinancing. Mortgage fees and loan servicing income fell about
41 percent to $404 million.

Net seductiveness income rose 7.6 percent to $12.21 billion,
primarily driven by loan expansion and a aloft rates.

Rising seductiveness rates are customarily good for banks, allowing
them to boost how most they assign for loans faster than they
increase how most they compensate for deposits.

JPMorgan’s non-interest losses rose to $14.51 billion, up
from $13.64 billion a year earlier.

At a finish of May, Chief Financial Officer Marianne Lake had
estimated losses of reduction than $14.5 billion in a quarter.

JPMorgan’s shares were small altered in premarket trading.
They have risen 7.9 percent in value this year, mirroring gains
in a broader SP 500 Financial Index.

About half of those gains have come after Jun 28 when the
Federal Reserve authorized JPMorgan’s devise to spend as most as
$19.4 billion to buy behind batch over a subsequent year. The bank
also won accede to boost a quarterly dividend.

Wells Fargo Co and Citigroup Inc are also
scheduled to news formula on Friday.
(Reporting by Sweta Singh in Bengaluru and David Henry in New
York; Editing by Saumyadeb Chakrabarty)

Read a strange essay on Reuters. Copyright 2017. Follow Reuters on Twitter.

Article source: http://www.businessinsider.com/r-update-1-jpmorgan-beats-estimates-on-fed-rate-hikes-loan-growth-2017-7

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