JPMorgan Chase says its profits rose 32% on strong results in investment banking business, credit-card operations and mortgage lending. Net earnings were $6.5 billion, or $1.60 a share, on revenue of nearly $26 billion versus earnings of just under $5.0 billion, or $1.21 per share, on sales of about $22 billion a year earlier. (This represents year-over-year sales growth of about 18%.)
“Our earnings reflected strong growth across our businesses,” Jamie Dimon, the bank’s chief executive, said in a statement on Friday.
Wells Fargo, currently the biggest U.S. mortgage lender, saw its second-quarter profit grow roughly 20%: Net income rose to $5.52 billion, or $0.98, from $4.62 billion, or $0.82. Revenue, though, expanded just 0.5% to $21.4 billion from $21.3 billion.
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“Wells Fargo again demonstrated an ability to grow during a dynamic economic and interest-rate environment,” the bank’s chairman and CEO, John Stumpf, said in a statement.
Bank of America-Merrill Lynch (BAC) plans to report earnings on Wednesday, while Morgan Stanley is set to report its second-quarter results on Thursday.
As measured by the Market Vectors Bank and Brokerage ETF, which has sizeable positions in Wells, JPMorgan and BofA, the overall financial sector is up about 5% year to date and more than 30% in the last 12 months.
JPMorgan says that its asset management unit had revenue of more than $2.73 billion in the second quarter, up from $2.36 billion a year ago and $2.65 billion in the first quarter. Net income for the group was about $500 million in the most recent period — up from $487 million in March and $391 million in June 2012.