JPMorgan & Chase Co. said net income rose 13 percent in the second quarter, beating analysts' expectations.
The second largest bank in the U.S., JPMorgan Chase had an increase in investment-banking profits of 49 percent. The bank also benefited as more customers paid credits cards on time, a positive sign in a sluggish American economy.
JPMorgan Chase had a net income increase of $5.43 billion in the second quarter, or $1.27 a share. In the same period a year ago, JPMorgan Chase had net income of $4.8 billion.
The New York-based financial services company announced its second quarter earnings before the opening of the trading day Thursday.
Analysts had predicted $1.21 per share in net income.
"I think these are really good numbers," said Michael Holland, who oversees more than $4 billion in assets at New York-based Holland & Co., according to to Bloomberg.
Second quarter highlilghts for JPMorgan Chase included:
--$1.0 billion pretax benefit from reduced loan losses in credit card services.
--$837 million pretax benefit from securities gains in corporate.
--$1.0 billion pretax expense for estimated costs of foreclosure-related matters in retail financial services.
--$1.3 billion pretax of additional litigation reserves, for mortgage-related matters, in corporate.
--More than $900 billion in new and renewed credit provided to and capital raised for consumers, corporations, small businesses, municipalities and not-for-profits year-to-date.
JPMorgan Chase says it has hired more than 10,000 employees year-to-date as well.
"Our second-quarter earnings reflected solid performance across most of our businesses," said Jamie Dimon, JPMorgan Chase chairman and CEO. "The investment bank delivered strong earnings across most products and maintained its #1 ranking in global investment banking. Commercial banking reported record revenue and continued loan growth for the quarter. Retail financial services demonstrated good underlying performance in retail banking but continued to experience high losses for mortgage-related issues."