Why Is JPMorgan Chase & Co. (JPM) Up 1.7% Since Last Earnings Report?

Core Viewpoint - JPMorgan Chase & Co. reported strong second-quarter earnings driven by solid performance in capital markets and loans, surpassing analyst expectations, but faced challenges in non-interest income and net income generation [2][6][9]. Financial Performance - Adjusted earnings for Q2 2025 were $4.96 per share, exceeding the Zacks Consensus Estimate of $4.51, with a one-time tax benefit included, earnings reached $5.24 per share [2]. - Net revenues were reported at $44.91 billion, down 11% year-over-year but above the consensus estimate of $43.81 billion [6]. - Non-interest income fell 21% to $21.7 billion, but adjusted non-interest income grew nearly 10% when excluding prior year gains related to Visa shares [7]. Market and Investment Banking Performance - Market revenues increased by 15% to $8.9 billion, surpassing management's expectations, with fixed-income markets revenues up 14% and equity trading revenues up 15% [3]. - Investment Banking (IB) fees rose 7% year-over-year to $2.51 billion, with advisory fees and debt underwriting fees increasing by 8% and 12%, respectively [4]. Loan and Credit Metrics - Net Interest Income (NII) rose 2% year-over-year to $23.21 billion, driven by higher yields and a 7% increase in total loans [6][5]. - Provision for credit losses decreased by 7% to $2.85 billion, while net charge-offs grew 8% to $2.41 billion [10]. Capital Position and Share Repurchases - The Tier 1 capital ratio was estimated at 16.1%, down from 16.7% year-over-year, while the book value per share increased to $122.51 [11]. - During the quarter, the company repurchased 29.8 million shares for $7.1 billion [12]. Future Outlook - Management projects NII to reach approximately $95.5 billion for 2025, up from earlier estimates of $94.5 billion, and expects non-interest expenses to also be $95.5 billion [13]. - The company anticipates healthy card loan growth but below the previous year's level of 12% [14]. Market Sentiment and Estimates - Since the earnings release, there has been an upward trend in estimates revisions, indicating positive market sentiment [15]. - JPMorgan Chase & Co. holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [17].