NEW YORK (CNNMoney)
That was the takeaway from the company's second-quarter earnings Tuesday: growth in consumer and community banking made up for a sharp drop in trading revenue. And a significant uptick in deposits and credit cards was yet another sign that consumers helped drive its latest results.
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"Consumers, middle market companies and corporations are in increasingly good financial shape and the labor market is showing steady improvement," CEO Jamie Dimon said in a statement.
Still, profit and revenue were lower compared with the same quarter last year, when the bank's mortgage machine put up big numbers. JPMorgan said mortgage originations fell 66% from that period.
JPMorgan (JPM) reported a second-quarter profit of $6 billion, or $1.46 per share, significantly better than the $1.30 per share analysts were expecting. Revenue came in at $25.3 billion, which also beat forecasts.
Despite the less-than-stellar trading atmosphere, one bank is smiling big: Goldman Sachs (GS) reported earnings Tuesday that also exceed expectations.
It was a much different kind of win for Goldman compared to its rival JPMorgan. Goldman Sachs pulled off a strong quarter thanks to a hot investment banking environment for mergers and acquisitions and initial public offerings.
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Goldman Sachs made $2.04 billion, or $4.10 per share in the second quarter on revenues of $9.13 billion. Both earnings and revenue surpassed analyst predictions.
The bank's revenue from underwriting bonds came in at a record high. Many companies have taken advantage of persistently low interest rates to fund bond offerings, and fees from such activities can be lucrative for banks.
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JPMorgan also experienced strength in investment banking, proving that its good fortunes last quarter weren't all thanks to the consumer.
Still, a steep drop-off in trading revenue worrisome for Wall Street. Trading in both stocks and bonds fell at both banks due to lower market volume and stricter regulation.
Investors will be listening in on the bank's conference call this morning for signs about Dimon's health. Earlier this month, the banking chief disclosed that he has throat cancer, but called his prognosis "excellent."
JPMorgan shares jumped almost 3% in premarket trading Tuesday, while Goldman was up roughly 2%.
First Published: July 15, 2014: 7:36 AM ET
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