NEW YORK (AP) — JPMorgan Chase & Co.'s second-quarter income rose 13 percent as the bank collected higher fees from equity and debt underwriting in its investment banking business. The bank also cut losses in its credit card portfolio.
The New York bank reported Thursday that it earned $5.4 billion, or $1.27 per share in the three months ending in June. That was above the $1.22 per share that analysts surveyed by FactSet had forecast. JPMorgan earned $4.8 billion, or $1.09 per share, in the same period a year ago.
Investment banking income jumped 49 percent, to $2.1 billion, as the bank collected higher fees. The bank set aside $2.6 billion for compensation to its investment bankers, down from $2.9 billion in the same period last year.
JPMorgan's lending business faltered in the second quarter. Despite low interest rates, the bank lost $454 million in its auto and mortgage loan operations, compared with income of $364 million in the prior year.
Even in credit cards, a bright spot in recent quarters, JPMorgan's customers weren't spending as much, reflecting a lack of confidence in the economy. The total amount of credit card debt held by JPMorgan fell 12 percent compared with a year ago as its customers spent less. JPMorgan reduced its loan loss reserves by $1 billion as more people paid their bills on time.
JPMorgan's stock rose 2 percent to $40.57 in pre-market trading Thursday.