JPMorgan posts record profits, driven by the SpaceX IPO
In the third quarter, profits totalled 21.2 billion, driven by investment banking activities and gains on the stake in Visa
JPMorgan Chase posted record profits in the second quarter, thanks to a wave of major IPOs and mergers that pushed investment banking fees to their highest levels since 2021, whilst its trading desk capitalised on market volatility. Revenues also rose across all of the bank’s divisions. As mentioned, the investment banking division rode a sharp rebound in the US IPO market, led by the SpaceX flotation, which made a sensational market debut as the largest listing in history, with JPMorgan acting as one of the lead underwriters for the deal.
“The strength demonstrated by the bank is underpinned by a number of favourable factors,” said CEO Jamie Dimon, “including AI-driven capital investments, fiscal stimulus and the benefits of more efficient regulation.” JPMorgan’s shares, however, fell by 2 per cent during a fairly volatile pre-market session, after the bank raised its expenditure forecast for 2026 to $107.5 billion from the previous $105 billion.
To be more specific, the largest US bank reported a profit of $21.2 billion, equivalent to $7.70 per share, in the three months ending 30 June, compared with $14.99 billion, or $5.24 per share, in the same period of the previous year. Profit was boosted by a $4.6 billion gain linked to its stake in Visa. Market revenue, which includes trading activities, jumped by 35 per cent compared with last year. On an adjusted basis, earnings of $6.14 per share exceeded expectations of $5.85, according to estimates compiled by LSEG.
Net interest income, excluding the markets segment, rose by 4 per cent compared with the previous year to reach $23.7 billion in the quarter, whilst average loans grew by 10 per cent. The bank has raised its 2026 forecast for net interest income to $96.5 billion, excluding the markets division, up from the previous forecast of $95 billion. Total net interest income, including the markets division, is expected to rise to $105.5 billion this year, compared with the $103 billion previously forecast.
Although banks continue to describe consumers as resilient, the financial health of low-income borrowers remains a key concern, as higher interest rates and the still-high cost of living are putting pressure on household finances. Dimon stated that a number of risks remain under scrutiny, including geopolitical tensions and wars, persistent inflation, substantial global fiscal deficits and high asset prices.
