(Reuters) – JPMorgan Chase posted a 67% jump in second-quarter profit on Friday, helped by higher loan interest rates and the buyout of assets from First Republic Bank.
Profit for the largest US bank climbed to $14.47 billion (€12.9 billion), or $4.75 per share, for the quarter ended June 30, a figure to compare with 8, $65 billion, or $2.76 per share, recorded a year earlier.
JPMorgan bought the majority of the assets of bankrupt regional bank First Republic Bank in May, in a government-backed deal after weeks of turmoil in the sector.
This bolstered JPMorgan’s net interest income (NII), the difference between what the bank earns on loans and what it pays for deposits, which jumped to $21.9 billion, a up 44%, or 38% if First Republic is excluded.
JPMorgan said it expects net interest income of about $87 billion in 2023.
“Consumer balance sheets remain healthy and consumers are spending, albeit somewhat more slowly,” chief executive Jamie Dimon said in a statement.
“That said, there are still significant risks in the immediate term,” such as consumers’ use of their cash reserves, high inflation, quantitative tightening and war in Ukraine, he added.
The action advances by 2.4% before the market.
(Reporting Niket Nishant and Noor Zainab Hussain in Bangalore and Nupur Anand in New York; Diana Mandiá, editing by Kate Entringer)
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