During the pandemic, the major US financial institutions have armed themselves with high provisions against a wave of loan defaults.
However, that did not happen - thanks in part to enormous state aid.
JPMorgan Chase also benefits from this.
New York - JPMorgan Chase, the largest US bank, posted a surprisingly strong profit jump in the second quarter in view of the sharp decrease in credit risks due to the economic recovery from the Corona crisis.
With around 11.9 billion US dollars (10.0 billion euros), the largest US financial institution earned around two and a half times as much as a year earlier.
JPMorgan announced on Tuesday in New York.
The bank thus fared better than analysts expected.
CEO Jamie Dimon spoke of solid results across all business areas and was confident for the rest of the year as the economic outlook continued to improve.
However, the latest jump in profit was also due to the fact that JPMorgan liquidated a net $ 2.3 billion in loan loss provisions for loans at risk of default during the Corona crisis.
Although the quarterly figures were above market expectations, the bank's shares initially reacted with slight price losses before the trading day.
JPMorgan's day-to-day business has recently been much less smooth. The total income of the bank decreased compared to the same period last year by about eight percent to 30.5 billion dollars. JPMorgan had to cope with lower securities trading revenues, and the consumer credit business continued to be sluggish. The money house recorded successes in traditional investment banking, where the flood of IPOs brought significantly more fees into the coffers.
The leading US investment bank Goldman Sachs, on the other hand, has recently convinced almost across the board. With almost 5.5 billion dollars (4.6 billion euros), the bank raked in its second-highest quarterly profit ever. A year earlier, high provisions for impending loan defaults and an agreement in the multi-billion dollar corruption and money laundering affair surrounding the Malaysian sovereign wealth fund 1MDB caused Goldman Sachs' profits to collapse.
The net income - the income of the bank - increased year-on-year by 16 percent to almost 15.4 billion dollars, such as Goldman Sachs announced. While earnings in the capital markets business were bubbling, the company suffered a decline of almost a third in the trading business. CEO David Solomon was satisfied with the annual report, but warned of further challenges in overcoming the corona pandemic. dpa