(Reuters) -JPMorgan Chase & Co reported a 155% jump in quarterly profit on Tuesday that trounced estimates as the largest U.S. bank gained from a surge in dealmaking and released more reserves it had set aside last year for potential pandemic-related loan defaults.
The Wall Street behemoth, whose fortunes tend to reflect the health of the U.S. economy, said robust capital markets and a jump in M&A activity offset a slowdown in trading and weakness in consumer lending as the economy starts to reopen after the COVID-19 pandemic.
The bank’s net income rose to $11.9 billion, or $3.78 per share, in the quarter ended June 30, from $4.7 billion, or $1.38 per share, a year earlier. Revenue fell 7% to $31.4 billion.
Analysts on average had expected earnings of $3.21 per share, according to Refinitiv.
Banks were forced to set aside billions last year for possible loan defaults. But accommodative monetary policy and stimulus checks kept the American consumer healthier than initially feared, allowing banks release more of their reserve capital.
Widespread vaccinations have led large parts of the United States to ease pandemic restrictions, setting the stage for a broader economic recovery.
Wall Street banking has remained strong for most of the past year, as traders capitalized on volatility in the market while corporations sought capital as well as advice on deals.
Goldman Sachs, Wall Street’s premier investment bank, will report results later on Tuesday.
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