{"id":193451,"date":"2023-07-14T10:45:00","date_gmt":"2023-07-14T14:45:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=193451"},"modified":"2023-07-14T10:24:09","modified_gmt":"2023-07-14T14:24:09","slug":"jp-morgans-q2-profit-surges-to-14-47b-on-back-of-frc-deal-and-rising-interest-rates","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/jp-morgans-q2-profit-surges-to-14-47b-on-back-of-frc-deal-and-rising-interest-rates\/","title":{"rendered":"JP Morgan\u2019s Q2 Profit Surges to $14.47B on Back of FRC Deal and Rising Interest Rates"},"content":{"rendered":"\n

JPMorgan’s profit and revenue rose substantially in Q2 2023, in part due to its May acquisition of the imploded First Republic Bank.<\/strong><\/p>\n\n\n\n

JPMorgan\u2019s profit jumped 67%<\/a> to $14.47 billion in the second quarter of 2023, driven by rising interest rates and the buyout of the collapsed First Republic Bank in May. JPMorgan said its profit would have been up 40% year-over-year, excluding the First Republic deal. <\/p>\n\n\n\n

JPMorgan\u2019s Q2 Results Beat Expectations<\/h2>\n\n\n\n

Wall Street titan JPMorgan Chase said its Q2 2023 profit soared 67% after getting a significant boost from acquiring the collapsed First Republic Bank<\/a> in May. JPMorgan\u2019s shares rallied in premarket trading Friday.<\/p>\n\n\n\n

According to the report, the bank\u2019s Q2 profit ballooned to $14.47 billion, or $4.75 per share, compared to $8.65 billion, or $2.76 per share, in the same period last year. The results were also significantly higher than analysts\u2019 $3.97 per share estimates. <\/p>\n\n\n\n

Further, JPMorgan saw its revenue soar by 34% year-over-year to $41.31 billion, while Wall Street expected $38.66 billion. Revenue in JPMorgan\u2019s consumer banking unit jumped 37% from the year-ago quarter, while profit skyrocketed 71% to $5.31 billion, fueled by rising interest rates. <\/p>\n\n\n\n

The commercial banking division, expected to benefit from an inflow of clients after the First Republic takeover, saw its revenue increase by 49% year-over-year. JPMorgan said that its Q2 profit and revenue would have climbed by 40% and 21%, even without the First Republic deal.<\/p>\n\n\n\n

JPMorgan\u2019s Takeover of First Republic<\/h2>\n\n\n\n

After winning the auction battle, JPMorgan acquired the First Republic Bank on May 1, 2023. The banking giant paid $10.6 billion for the imploded lender and said it would reopen all of its 84-banking offices as branches of JPMorgan Chase Bank. <\/p>\n\n\n\n

The acquisition, essentially a rescue deal, was inked with the help of federal regulators. It resulted in a significant influx of new clients in JPMorgan\u2019s consumer and commercial units and an immediate gain of $2.7 billion. <\/p>\n\n\n\n

The First Republic failed during a severe banking crisis<\/a> earlier this year, during which other prominent lenders such as Silicon Valley Bank (SVB) and Signature Bank also collapsed. More specifically, First Republic carried many uninsured deposits and fell into a liquidity crisis<\/a>. <\/p>\n\n\n\n

Shares of JPMorgan were up 3% in premarket trading on Friday at the time of writing. <\/p>\n\n\n\n

—<\/p>\n\n\n\n

Originally Posted July 14, 2023 – JP Morgan\u2019s Q2 Profit Surges to $14.47B on Back of FRC Deal and Rising Interest Rates<\/a><\/p>\n\n\n\n

Disclosure: <\/strong>Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.<\/p>\n","protected":false},"excerpt":{"rendered":"

JPMorgan’s profit and revenue rose substantially in Q2 2023, in part due to its May acquisition of the imploded First Republic Bank.S<\/p>\n","protected":false},"author":501,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6,8,9,22,26,3],"tags":[267,850,5007,2011],"contributors-categories":[13710],"class_list":{"0":"post-193451","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-north-america","7":"category-region","8":"category-securities","9":"category-stocks","10":"category-text-articles","11":"category-traders-insight","12":"tag-earnings","13":"tag-interest-rates","14":"tag-jp-morgan","15":"tag-q2","16":"contributors-categories-the-tokenist"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\nJP Morgan\u2019s Q2 Profit Surges to $14.47B on Back of FRC 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