JP MORGAN CHASE(US:JPM)2025-08-05 20:18Financial Performance - JPMorgan Chase reported net income of $14.99 billion for Q2 2025, a decrease of 17% year-over-year, with diluted earnings per share of $5.24[25]. - Total net revenue for Q2 2025 was $44.91 billion, down 11% from $50.20 billion in Q2 2024, primarily due to a 21% decline in noninterest revenue[22][27]. - Net income for Q2 2025 was $14,987 million, down from $18,149 million in Q2 2024, reflecting a 17.8% decline[112]. - The overall net income for the Firm decreased by 75% to $1,695 million in Q2 2025, compared to $6,779 million in Q2 2024[130]. - Year-to-date net income reached $9.6 billion, up 6% from $9.0 billion in the previous year[138]. - Year-to-date net income was $13.6 billion, up 9%, with total net revenue of $39.2 billion, a 10% increase[167]. Revenue Breakdown - Total net revenue for the same period was $18.8 billion, up 6% from $17.7 billion in 2024[135]. - Noninterest revenue reported for Q2 2025 was $21,703 million, a 21% decrease from $27,454 million in Q2 2024[115]. - Total net revenue for Consumer & Community Banking increased by 6% to $18,847 million in Q2 2025, compared to $17,701 million in Q2 2024[130]. - Commercial & Investment Bank reported a 9% increase in total net revenue, reaching $19,535 million in Q2 2025, up from $17,917 million in Q2 2024[130]. - Asset & Wealth Management saw a 10% rise in total net revenue, totaling $5,760 million in Q2 2025, compared to $5,252 million in Q2 2024[130]. - Total net revenue for the Markets business was $8.936 billion for the three months ended June 30, 2025, up from $7.793 billion in the same period of 2024, representing a 14.7% increase[188]. Credit Losses and Allowances - The provision for credit losses was $2.85 billion, with net charge-offs of $2.4 billion, reflecting a $179 million increase in Card Services[33]. - The provision for credit losses decreased by 7% year-over-year, totaling $2.849 billion for the second quarter of 2025[70]. - The provision for credit losses was $2.1 billion, a decrease of 21% from $2.6 billion in the prior year[136]. - The total allowance for credit losses stood at $28.3 billion, with a coverage ratio of 1.85% compared to 1.81% in the prior year[28]. - The allowance for loan losses increased by 2% to $24.95 billion as of June 30, 2025, compared to $24.35 billion at the end of 2024[85]. - The allowance for credit losses increased by 10% to $10,165 million, up from $9,274 million year-over-year[179]. Assets and Deposits - Total assets increased by 14% to $4.55 trillion as of June 30, 2025, compared to $4.00 trillion at the end of 2024[85]. - Average deposits rose by 6% to $2.5 trillion, supported by net inflows in Payments and Securities Services[35]. - Deposits increased by 6% to $2.56 trillion as of June 30, 2025, compared to $2.41 trillion at the end of 2024[92]. - Total deposits increased by 12% to $1,170,063 million, up from $1,046,993 million year-over-year[179]. - Total assets as of June 30, 2025, were $652.4 billion, a 2% increase from $638.5 billion in 2024[144]. Expenses and Tax Rate - Total noninterest expense for the three months ended June 30, 2025, was $23.78 billion, a slight increase from $23.71 billion in 2024[75]. - Compensation expense increased by 6% to $13.71 billion for the three months ended June 30, 2025, compared to $12.95 billion in 2024[75]. - The effective tax rate decreased to 18.0% for the three months ended June 30, 2025, down from 22.6% in 2024[81]. - Total noninterest expense rose to $9.9 billion, reflecting a 5% increase due to higher compensation and noncompensation expenses[136]. Customer and Market Activity - Active digital customers grew to 73,014 thousand, representing a 6% increase from 69,011 thousand in the prior year[150]. - Total payments transaction volume increased by 13% to $1.8 trillion in Q2 2025, compared to $1.6 trillion in Q2 2024[150]. - Mortgage origination volume for Q2 2025 was $13.5 billion, a 26% increase from $10.7 billion in Q2 2024[152]. - The number of branches increased by 2% to 4,994 in Q2 2025, compared to 4,884 in Q2 2024[150]. - Client investment assets rose to $1,155.0 billion, marking a 14% increase from $1,013.7 billion in the previous year[150]. Investment Banking and Advisory - Investment Banking fees grew by 7% year-over-year and 12% quarter-over-quarter, maintaining a 1 ranking with an 8.9% wallet share year-to-date[37]. - Total investment banking fees increased by 7% to $2,513 million for the three months ended June 30, 2025, compared to $2,356 million in 2024[181]. - Advisory fees rose by 8% to $844 million for the three months ended June 30, 2025, compared to $785 million in 2024[181]. Market and Securities Services - Markets & Securities Services revenue amounted to $10.3 billion, up 15%[160]. - Principal transactions revenue for Fixed Income Markets was $3.205 billion in Q2 2025, compared to $2.581 billion in Q2 2024, reflecting a 24.1% increase[188].