JPMorgan Reports Strong Q2 Results Despite 17% Profit Drop, Trading Surges

How Did Trading and Investment Banking Drive Results?

The standout performance came from JPMorgan’s trading unit, where revenue surged 15% to $8.9 billion. Both fixed income and equity desks benefited from increased market activity, as investors reacted to changes in U.S. tariff policies.

Investment banking also outperformed internal expectations, with fees rising 7% to $2.5 billion, bolstered by a rebound in M&A and debt underwriting.

These results mark a sharp improvement from the bank’s earlier forecast of a mid-teens decline in investment banking revenue.

What’s the Outlook for Net Interest Income?

Reflecting improved confidence, JPMorgan raised its full-year net interest income (NII) guidance to $95.5 billion, up from $94.5 billion.

NII, which captures the spread between what the bank earns on loans versus pays on deposits, remains a core profitability driver.

While the provision for credit losses dipped to $2.85 billion from $3.05 billion a year ago, JPMorgan continues to watch credit quality closely.