JPMorgan lifts interest income forecast after profit beat
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 (V.N), opens new tab 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
25 minutes ago
- The Independent
Whitmer says 'massive economic uncertainty' is to blame on semiconductor project failure in Michigan
Plans to build a semiconductor manufacturing plant in Michigan have fallen through and Democratic Gov. Gretchen Whitmer said Wednesday that 'massive economic uncertainty' is to blame. Bringing the company to Michigan was a key goal for Whitmer, a Democrat and potential 2028 presidential candidate who is in her final years as governor of the battleground state. Domestic manufacturing is a priority of President Donald Trump 's second administration and the president has leveraged tariffs as a way to incentivize companies to build and stay in America. While Whitmer did not mention Trump by name in her remarks, she pointed the finger at his tariffs that have shaken up the economy periodically this year. 'Their board came to this decision amid national economic turmoil, which is at risk of worsening amid threats of even higher tariffs,' Whitmer said in a statement. Whitmer did not name the company but state records show California-based technology firm Sandisk Corp. was considering the sprawling 1,300-acre site near the city of Flint and forecasted 9,400 jobs and 5,000 construction jobs as a result. Sandisk declined to comment on Wednesday. The news quickly set off dueling political statements from Republicans and Democrats in the state. The Trump administration is using tariffs and other tactics to bring manufacturing in critical areas like semiconductors back to the U.S., White House spokesperson Kush Desai said in a statement in response to Whitmer's remarks. Desai pointed to new semiconductor development in Texas and Arizona this year as wins garnered by the Trump administration in the chips and technology industry. Other Democrats were quick to attribute the loss in Michigan to Trump's economic policies Wednesday. 'Trump's abandonment of long-term investments and chaotic tariff practices are not only raising costs, they just killed 10,000 good-paying jobs,' U.S. Rep. Kristen McDonald Rivet, a Democrat who represents the area, said in a statement. 'This could have been a game-changer for mid-Michigan's economy.' Michigan House of Representatives Speaker Matt Hall, a Republican, said he supports Trump's strategy of relying on tariffs and incentives in the tax and spending bill to bring manufacturing development to America, not overseas. 'We simply need state leaders who are focused on making sure Michigan is the best possible place to build and grow,' he said. Sandisk, known for making flash drives and memory cards, was looking to break ground on the project in 2025, according to documents provided by the Michigan Economic Development Corporation. Michigan offered Sandisk $1.925 billion in cash grants, $250 million in workforce development funding and about $3.76 billion in tax breaks, according to documents dated to August 2024. Congress passed the CHIPS and Science Act incentivizing technology development about halfway through former President Joe Biden 's term. Even as Trump and Republican lawmakers have since threatened to put an end to the act, the Department of Commerce was collaborating with Sandisk on securing federal incentives through the package. Whitmer in her statement said that the company is no longer looking to build a semiconductor facility anywhere in the U.S. In a speech in May, Whitmer said she had been advocating with the Trump administration directly to help bring a chip plant to the state.
Reuters
25 minutes ago
- Reuters
Volvo Cars pauses sales of some cars in US as tariffs pinch profits
STOCKHOLM, July 16 (Reuters) - Volvo Cars ( opens new tab said it has scaled back its U.S. model lineup this year, among the first examples of a major automaker halting U.S. shipments as President Donald Trump's tariffs make it harder to sell a broad range of vehicles profitably. The Swedish carmaker, which is owned by China's Geely Holding, told Reuters this week that it has been pulling sedans and station wagons from its U.S. portfolio as interest has waned. Volvo, which releases quarterly results on Thursday, is one of the most exposed automakers to rising tariffs as the majority of its vehicles are produced in Europe or China. Import duties on vehicles made outside of the United States that were imposed on April 1 have made market conditions more challenging for foreign sellers to the U.S. market. U.S. tariffs of 27.5% on European-made cars and over 100% on Chinese imports have forced automakers to rethink their product strategies, with Aston Martin (AML.L), opens new tab limiting U.S. exports and Nissan (7201.T), opens new tab suspending U.S. production of Canadian-bound cars. Industry experts have warned that automakers that cannot absorb the cost of border taxes themselves or pass it on to consumers will simply stop selling those models in the U.S. market. Other industries, such as apparel and toys, are experiencing similar effects. "If you're going to reduce sales to the U.S., then you'd want to eke more value out of the sales that you do," said Andy Leyland, co-founder of supply chain specialists SC Insight. Volvo Cars will now only sell around half of its 13-model global lineup in the U.S. market. Other than its V60 station wagon, it will exclusively sell SUVs in the country. That means that sedans will no longer be sold in the U.S. Production of the S60 at Volvo's South Carolina plant stopped last year, sales of the China-made S90 have been halted and Volvo said on Monday the new ES90 sedan cannot be sold profitably in the country. Globally, it is also dropping one of its last remaining station wagons, the V90, as demand declines. Volvo Cars told Reuters its European-made electric EX40 had also been temporarily halted, but it would resume sales "shortly". The company did not provide a reason. Even Volvo's ambitions for its flagship budget SUV, the EX30 - meant to be a big U.S. seller - have been curtailed. Volvo only offers the pricier dual-motor version at $46,195 to U.S. buyers rather than the cheaper single-motor version, with a promised sticker price of $35,000, similar to Tesla's (TSLA.O), opens new tab Model 3. When faced with tariffs, carmakers tend to focus on selling high-margin models, but Andy Palmer, former CEO of Aston Martin, said such a strategy could have mixed results. "Some (customers) will either go to a different company" or be forced to buy a model "they didn't necessarily want or need," Palmer said. Bill Wallace, owner of Wallace Automotive Group that sells Volvos in Florida confirmed shoppers are quick to pick other brands. "At the end of the day, even with a luxury model, they are going to compare their payment with a BMW, Lexus or a similar model ... and if it's a little bit higher ... you're just gonna lose the business," he said. Since 2022, Volvo has been hit by software bugs, supply chain snags, and tariff-related delays that slowed the rollout of its flagship electric EX30 and EX90. By the time deliveries began in 2024, EV demand had cooled, prices had spiked and new tariffs had kicked in. "Customers love them(Volvo), but they are just at the wrong place at the wrong time right now, Wallace said. Although it is produced at Volvo's U.S. factory in South Carolina, the high-end EX90 is hurt by tariffs because most of its components are European-made, which are now subject to 25% tariffs. The EX90 starts at $81,290 but struggled to gain traction with U.S. consumers, with less than 2,000 sold in the first half of 2025. Its South Carolina factory can make up to 150,000 of the cars annually. The company said on Wednesday it would add its popular SUV XC60 hybrid to the factory in 2026. ($1 = 9.7454 Swedish crowns)
The Independent
an hour ago
- The Independent
‘Surprised' Trump appears to forget he appointed Powell as Fed chair before blaming Biden for keeping him on
Donald Trump appeared not to recall having been the president who first appointed Federal Reserve Board of Governors Chair Jerome Powell to the position he has held since 2018 — the second year of Trump's first term. Trump, who has been flirting with the notion of firing the central bank boss over his failure to cut interest rates, was speaking during an Oval Office press opportunity alongside the Crown Prince and Prime Minister of Bahrain when he was asked whether he was seriously considering the move, as has been reported. He replied with a derisive set of remarks in which he assailed Powell for not pushing the central bank's board to cut interest rates, citing the European Central Bank's multiple rate cuts in recent months, and accusing Powell of only having assented to cuts during last year's election to benefit the Democratic candidate, former vice president Kamala Harris and calling him 'a terrible Fed chair' before expressing surprise that he had been named to the position in the first place. 'I was surprised he was appointed,' Trump said. In his next breath, the 79-year-old president possibly remembered that he was the one who nominated Powell to the job as a successor to Janet Yellen during his first term, and added that he had been surprised by Powell's re-appointment to a second term by his successor and predecessor, President Joe Biden. 'I was surprised, frankly, that Biden put him in and extended him,' he said. The president's apparent gaffe came just one day after he delivered a rambling speech in Pittsburgh in which he claimed that his uncle, a noted physicist who helped develop radar systems during World War II, taught notorious terrorist Theodore Kaczynski at MIT, despite none of it having actually happened. During his meandering remarks at Carnegie Mellon University, Trump invoked his late paternal uncle, Dr. John Trump, who he often describes as the 'longest-serving professor' to ever teach at the Massachusetts Institute of Technology, even though the noted physicist did not achieve that distinction despite teaching there for 37 years as a professor and another 12 as a senior lecturer after mandatory retirement. John Trump died in 1985. President Trump called the late Dr. Trump, a pioneer in cancer research who was awarded the National Medal of Science by President Ronald Reagan in 1983, a 'smart man,' citing his multiple scientific degrees, and claimed that one of his students was Kaczynski, a mathematics professor who became widely known as the Unabomber when he was arrested in 1996 for a decades-long string of letter bomb attacks on figures in higher education and other industries. 'Kaczynski was one of his students. Do you know who Kaczynski was? There's very little difference between a madman and a genius,' he said. Trump then claimed to have asked his uncle about the murderous ex-academic. 'What kind of a student was he Uncle John? He said: 'What kind of a student — seriously, good ... he'd go around correcting everybody. But it didn't work out too well for him. Didn't work out too well, but it's interesting in life,' Trump said. The crowd did not show much of a reaction to the story, and it was unclear if the president was confusing Kaczynski, who died in a federal prison in 2023, with someone else. But it's highly unlikely if not impossible that any of what he said about his uncle and the notorious murderer was true. Not only did Kaczynski — whose undergraduate degree was from Harvard and earned his Masters and Doctoral degrees in mathematics from the University of Michigan — never attend MIT, but even if the president's uncle had crossed paths with the future terrorist, he could not have known that Kaczynski had been responsible for 16 bomb attacks between 1971 and 1995. The University of California at Berkeley professor turned murderous recluse was one of the country's most wanted fugitives until 1996, when his brother David Kaczynski, turned him in to the FBI after reading the now-infamous manifesto, Industrial Society and its Future, after The Washington Post published it at the recommendation of then-Attorney General Janet Reno and FBI Director Louis Freeh.
