(Reuters) -JPMorgan Chase raised its net interest income forecast for 2025 after strong performance in its investment banking and trading divisions helped it surpass profit expectations for the second quarter.
The bank now expects $95.5 billion of NII, or the difference between what it earns on loans and pays out on deposits, compared with an earlier estimate of $94.5 billion.
“The U.S. economy remained resilient in the quarter. The finalization of tax reform and potential deregulation are positive for the economic outlook,” CEO Jamie Dimon said in a statement.
However, he highlighted that significant risks persist, including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices.
Investors are closely scrutinizing banks’ results and their executives’ commentary this quarter to assess the impact of tariffs and the tax and spending bill Trump signed into law earlier this month.
Market activity surged as investors seized opportunities and hedged risks in response to shifting U.S. tariff policies. The turmoil propelled JPMorgan’s trading revenue 15% higher to $8.9 billion, driven by gains in both fixed income and equities.
Investment banking fees rose 7% to $2.5 billion, underpinned by a rise in initial public offerings and mergers and acquisitions.
Overall profit was $14.99 billion, or $5.24 per share, for the three months ended June 30, compared with $18.15 billion, or $6.12 per share, a year earlier, the largest U.S. bank said on Tuesday.
The comparisons were skewed by a nearly $8 billion one-off gain the bank had recorded on a share exchange agreement with Visa last year.
Excluding one-off costs, JPMorgan earned $4.96 per share, compared with the $4.48 per share that analysts were expecting, according to estimates compiled by LSEG.
Shares were marginally up before the open.
(Reporting by Niket Nishant in Bengaluru, editing by Lananh Nguyen and Anil D’Silva)
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