JPMorgan Chase’s second-quarter profits rose by 18 percent from a year ago, as the nation’s largest bank continues to benefit from higher interest rates and a lower tax bill following last year’s passage of President Donald Trump’s tax law.
JPMorgan earned $8.32 billion in the first quarter, or $2.29 a share, up from $7.03 billion, or $1.82 a share, in the same period a year earlier. The results by the New York-based bank beat analysts’ expectations for earnings of $2.22 a share.
Shares were 0.8 percent higher in pre-market trading.
The bank’s chairman and CEO Jamie Dimon said a strong economy and healthy U.S. consumer boosted the bank’s results.
“We see good global economic growth, particularly in the U.S., where consumer and business sentiment is high,” Dimon said in a statement.
Like in the first quarter, JPMorgan benefited greatly from a much lower tax bill compared to a year earlier. While pretax profits rose by $823 million, it saw its tax bill drop by roughly 17 percent in the quarter compared to a year earlier. The bank’s effective tax rate was 21 percent, compared with 28 percent in the prior quarter.
Total revenue was $28.39 billion, up from $26.67 billion a year earlier.