In addition, net revenue was $4.9bn in Q2 2023 for JPMorgan, 15% up year-on-year, driven by higher deposit margins on lower balances and higher management fees on strong net inflows.
Noninterest expense was $3.2bn, up 8%, driven by higher compensation, including growth in private banking adviser teams, higher revenue-related compensation and the impact of Global Shares and JPMorgan Asset Management China.
Furthermore, assets under management were $3.2trn, an increase of 16% year-on-year, and client assets were $4.6trn, a 20% spike. This was attributed to continued net inflows, higher market levels and the acquisition of Global Shares.
JPMorgan in Q2 2023
The group as a whole managed revenue of $41.3bn and managed revenue of $42.4bn.
Also, net income was $14.5bn, up 67% year-on-year, or up 40% if you exclude First Republic.
Net revenue was $42.4bn, up 34%, or up 21% excluding First Republic. Net interest income (NII) was $21.9bn, up 44%, or up 38% excluding First Republic. NII excluding Markets was $22.4bn, up 63%, or up 57% excluding First Republic, predominantly driven by higher rates, partially offset by lower deposit balances.
Jamie Dimon, chairman and CEO, commented on the financial results: “We reported another quarter of strong results, generating net income of $13.3bn and an ROTCE of 23% after excluding a net after-tax gain of $1.8bn relating to the First Republic transaction, as well as discretionary after-tax investment securities losses of $0.7bn. Even after the First Republic transaction, we maintained an extraordinarily strong CET1 capital ratio of 13.8% and had $1.4trn in cash and marketable securities. While we expect material capital changes with the finalization of Basel III and probable changes to come for bank liquidity, we will manage to any new requirements as we have demonstrated in the past; however, we caution that material regulatory changes would likely have real world consequences for markets and end users.”
Dimon continued: “Almost all of our lines of business saw continued growth in the quarter. In Consumer & Community Banking, new checking account production was very strong, while card loans were up 18%. In the Corporate & Investment Bank, Investment Banking fees remained challenged, although we gained market share YTD. In Commercial Banking, Payments revenue remained very strong and grew 79%. Finally, Asset & Wealth Management had record long-term inflows of $61bn, with inflows across channels, regions, and asset classes.”
Dimon added: “The US economy continues to be resilient. Consumer balance sheets remain healthy, and consumers are spending, albeit a little more slowly. Labor markets have softened somewhat, but job growth remains strong. That being said, there are still salient risks in the immediate view—many of which I have written about over the past year. Consumers are slowly using up their cash buffers, core inflation has been stubbornly high (increasing the risk that interest rates go higher, and stay higher for longer), quantitative tightening of this scale has never occurred, fiscal deficits are large, and the war in Ukraine continues, which in addition to the huge humanitarian crisis for Ukrainians, has large potential effects on geopolitics and the global economy. While we cannot predict with any certainty how these factors will play out, we are currently managing the Firm to reliably meet the needs of our customers and clients in all environments.”