JPMorgan Chase & Co. has reported a second-quarter 2024 net income of $18.1 billion, or $6.12 per share. When excluding significant items, the net income stands at $13.1 billion, or $4.40 per share. The return on equity (ROE) is reported at 23%, and the return on tangible common equity (ROTCE) is 28%, while the ROTCE excluding significant items is 20%. The Common Equity Tier 1 (CET1) capital ratio is at 15.3% and the Advanced Common Equity Tier 1 (CET1) capital ratio is at 15.5%.
Reported revenue for the second quarter is $50.2 billion, and managed revenue is $51.0 billion, which includes a $7.9 billion net gain related to Visa shares. Expenses amount to $23.7 billion, including a $1.0 billion donation of Visa shares to pre-fund contributions to the firm’s foundation. The reported overhead ratio is 47%, while the managed overhead ratio stands at 47%, with significant items reducing the reported overhead ratio by 6 percentage points.
Credit costs amount to $3.1 billion, including $2.2 billion of net charge-offs and an $821 million net reserve build. Average loans have increased by 6% year-over-year, including First Republic, and are flat quarter-over-quarter. Average deposits are down 1% year-over-year and flat quarter-over-quarter.
In the Corporate & Investment Bank (CIB) segment, ROE stands at 17%, and the division holds the #1 ranking for global investment banking fees with a 9.5% wallet share year-to-date. Markets revenue has gone up by 10%, with fixed income markets up 5% and equity markets up 21%. Average banking & payments loans are up 2% year-over-year and are flat quarter-over-quarter, with average client deposits up 2% year-over-year and 1% quarter-over-quarter.
The Asset & Wealth Management (AWM) segment reports an Assets Under Management (AUM) of $3.7 trillion, up 15%. Average loans are up 2% year-over-year and flat quarter-over-quarter, while average deposits are up 7% year-over-year due to the allocation of First Republic deposits to AWM in the fourth quarter of 2023 and flat quarter-over-quarter.
Jamie Dimon, Chairman and CEO, commented on the firm's performance, highlighting the increase in net income and the strong performance across various segments. He also mentioned the firm's focus on maintaining a fortress balance sheet and driving economic growth by extending credit and raising capital totaling more than $1.4 trillion year-to-date for various entities.
Dimon also pointed out the firm's CET1 capital ratio of 15.3%, providing excess capital even after the uncertainty created by Basel III endgame. He mentioned the board's intention to increase the common dividend for the second time this year, resulting in a 19% cumulative increase compared with the fourth quarter of 2023. The firm's priorities remain unchanged, with continued heavy investment in businesses for long-term growth and profitability.
In the press release, Dimon expressed vigilance about potential tail risks, including the complex geopolitical situation, inflationary forces, and the effects of quantitative tightening on a large scale. Despite the market's benign economic outlook, Dimon emphasized the firm's preparedness for a wide range of potential environments.
The press release also includes details about significant items contributing to the second-quarter results, capital distributions, fortress principles, and the firm's support for consumers, businesses, and communities.
Today the company's shares have moved -1.4% to a price of $204.6. For more information, read the company's full 8-K submission here.
