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JPMorgan Chase reported higher-than-anticipated investment banking fees in the second quarter, signaling a more resilient dealmaking market than many expected.
The bank, the first of the large Wall Street banks to share financial results, said the fees it earned providing dealmaking advice and capital raising rose 7% year over year and 12% quarter over quarter. Wall Street analysts had been expecting a 14% decline in investment banking fees.
“IB activity started slow but gained momentum as market sentiment improved,” Jamie Dimon, the firm’s CEO, wrote in an announcement accompanying the earnings release.
“The US economy remained resilient in the quarter,” he added, but warned of “significant risks” including tariffs, trade concerns, and a fraying political landscape.
Citi’s investment banking operation, led by former JPMorgan banker Vis Raghavan, reported a 13% uptick in investment banking fees, led by growth in M&A advice and equity capital raising.
Dealmaking stalled going into the second quarter due to uncertainty around Trump’s tariff agenda — and industry watchers have expressed concern that M&A could remain muted indefinitely due to Washington’s policy whiplash.
JPMorgan said revenue in the combined commercial and investment bank division was more than $19 billion for the quarter, driven by higher debt underwriting and advisory fees. Revenue from helping large investors trade, a bright spot in recent years, rose nearly $9 billion, up 15% year over year, likely a reflection of choppy trading activity.
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The bank posted net revenue of $45.7 billion, down 10% over last year, and net income of $15.0 billion, down 17%, driven in part by a one-time gain tied to shares of Visa that it recognized in the second-quarter of 2024.
Dimon also touted the success of the Chase Sapphire Reserve card franchise, saying the company’s relaunch of two Reserve card products had garnered “positive early reactions and strong new card acquisitions.” But the relaunch of the Sapphire Reserve card for everyday consumers was met with some blowback this year, particularly over its $795 annual fee.
Wall Street earnings will continue on Wednesday with results from Goldman Sachs, Morgan Stanley, and Bank of America.
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