JP Morgan Chase shares rise sharply despite low second-quarter earnings
July 17, 2014, 12:01 am TWN
NEW YORK--Shares of JP Morgan Chase bolted higher Tuesday even as the banking giant reported lower quarterly earnings due to a drop in mortgage banking profits and trading revenues.
JP Morgan, the biggest U.S. bank by assets, said second-quarter earnings slid 7.9 percent from the year-ago period to US$5.99 billion.
Still, shares jumped 3.8 percent in afternoon trade to US$58.44, making JP Morgan the biggest gainer in the Dow.
Deutsche Bank said the surprisingly solid results showed that JP Morgan offers "good upside over time."
Earnings translated into US$1.46 per share, well above analyst estimates of US$1.29.
Revenues dropped 2.3 percent from last year to US$25.35 billion, more than the US$23.76 billion forecast by analysts.