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Investing.com - JPMorgan Chase (NYSE:JPM) has posted a decline in second-quarter net revenue and income, but topped estimates, as markets and investment banking activity performed well in the face of tariff-driven volatility.
Net revenue fell by 10% to $45.7 billion, but still beat expectations of $44.06 billion, while net income dropped by 17% to $15 billion.
Earnings per diluted share came in at $5.24, slipping by 14% from a year earlier but above Bloomberg consensus estimates of $4.47. A year ago, JPMorgan’s earnings in the second quarter were boosted by a one-time $7.9 billion windfall from its shares in Visa (NYSE:V). Taking out the increase, this year’s quarterly results would have risen.
In a statement, CEO Jamie Dimon noted that the largest U.S. bank ended the quarter with a CET1 capital ratio of 15%, adding that this is "far in excess of our required capital levels." CET1 ratios provide a gauge of a bank’s financial health and solvency.
Dimon said the U.S. economy had remained "resilient" during the period, while the passage of a massive U.S. tax-cuts and spending bill and possible deregulation are "positive" for the wider outlook.
However, he warned of "significant risks," including from elevated tariffs and trade uncertainty, worsening geopolitical conditions, heightened fiscal deficits and frothy asset prices.
Recent data has suggested that the U.S. economy been able to resist a series of headwinds -- from the threat of President Donald Trump’s punishing tariff agenda to a brief flare-up of new violence in the Middle East. U.S. inflation has stayed relatively tepid and the labor demand has been largely stable, yet economists warn that, with Trump’s aggressive "reciprocal" tariffs potentially set to be implemented in early August, storm clouds may still be ahead.
"As always, we hope for the best but prepare the Firm for a wide range of scenarios,” Dimon said.
Net interest income, a measure of what a bank makes from loans and pays out for deposits, is now seen at $95.5 billion for the 2025 fiscal year, up from a prior estimate of $94.5 billion. In the second quarter, NII inched up by 2% to $23.3 billion, compared with estimates for $23.59 billion.
Net interest margin (NIM) also contracted to 2.43% from 2.58% in the first quarter. Projections had seen the figure at 2.57%.
"[T]he overall headline numbers are robust, although expectations were elevated, and some people might be disappointed with the NIM/NII performance," analysts at Vital Knowledge said in a note to clients.
Shares of JPMorgan were slightly below the flatline in early U.S. trading on Tuesday.