JPM: JPMorgan Tops Earnings Forecast as Higher Interest Rates Boost Net Income by 67%

The largest US bank predicts net interest income will continue to rise and lifted guidance from $84bn to $87bn in 2023.

• Banking giant JPMorgan delivered a blowout second-quarter report far exceeding Wall Street estimates. The largest among US banks saw its profits surge on the back of the Federal Reserve’s rate-lifting action. Put simply, JPMorgan has kept low rates on deposits, while charging more heavily for loans.
• JPMorgan’s net income rose 67% year-on-year to $14.47bn, topping estimates of $11.9bn. The bank’s net interest income - what they earned on loans after they paid depositors - arrived at $21.9bn, up 44% from a year ago. The figure prompted an increase in full-year guidance on net interest income to $87bn from $84bn.
• JPMorgan stock JPM advanced a mere 0.6% on Friday, after its before-the-bell earnings delivery. Shares of the lending juggernaut have experienced a moderate run so far into the year with a satisfactory double-digit gain of just under 11%.