In a quarter that straddled large shifts in markets because of the gyrations in tariff policy and geopolitics, JP Morgan started the Q2 reporting calendar as is customarily the case.

JP Morgan yesterday reported a drop in net income in the second quarter of 2025 of $14.99 billion from $18.1 billion in the same quarter a year before, with a fall in net revenue over the period affecting the result. Excluding a "significant" item – a $774 million income tax benefit in the corporate business – the net income result was $14.2  billion. 

Yesterday, shares in the US banking group ended slightly up, but were down a touch this morning in after-hours trading, according to reports.

The US-listed bank started the second quarter reporting season for banks by reporting that provision for credit losses slipped to $2.849 billion from $3.05 billion; noninterest costs rose slightly to $23.8 billion from $23.7 billion.

Stripping out certain one-off effects, noninterest revenue rose 8 per cent, driven by higher asset management fees in assets and wealth management and consumer and community banking, JP Morgan said in a statement yesterday.

Investors will scrutinise results of this and other banks to see how they were affected by the sharp market falls after President Donald Trump's "Liberation Day" tariff announcement of 2 April and subsequent market recovery.

Asset and wealth management
Within the AWM business, net income rose to $1.473 billion from $1.263 billion a year earlier; provision for credit losses rose to $46 million from $20 million; noninterest costs rose to $3.733 billion from $3.543 billion; net revenue rose 10 per cent year-on-year.

Assets under management were $4.3 trillion, rising 18 per cent, and client assets were $6.4 trillion, up 19 per cent. These increases were each driven by continued net inflows and higher market levels, it said.

“The US economy remained resilient in the quarter. The finalisation of tax reform and potential deregulation are positive for the economic outlook, however, significant risks persist – including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,” Jamie Dimon, CEO, said.

At the end of June, JP Morgan said it had a Common Equity Tier 1 ratio – a standard international yardstick of a bank’s shock absorber capital – of 15 per cent. Dimon said the ratio was “far in excess” of required levels.

“Earlier this month, we announced that the board intends to increase our common dividend for the second time this year, resulting in a 20 per cent cumulative increase compared with the fourth quarter of 2024. We also repurchased $7 billion of common stock… In addition, we have an extraordinary amount of liquidity, with $1.5 trillion of cash and marketable securities,” Dimon added.