JPMorgan's Q2 Profit Jumps on Higher Interest Income as First Republic Lifts Earnings

JPMorgan Chase posted a 67% jump in profit for the second quarter on Friday as it earned more from borrowers' interest payments and benefited from the purchase of First Republic Bank.

Shares of the largest U.S. lender rose 2.4% in premarket trading, and CEO Jamie Dimon reassured investors that the economy remained resilient.

The bank bought a majority of failed First Republic Bank's assets in a government-backed deal in May after weeks of industry turbulence.

That bolstered its net interest income (NII), which measures the difference between what banks earn on loans and pay out on deposits.

The bank's NII jumped $21.9 billion, up 44%, or up 38% excluding First Republic.

JPMorgan's profit climbed to $14.47 billion, or $4.75 per share, for the quarter ended June 30. That compares with $8.65 billion, or $2.76 per share a year earlier.

(Source: Reuters)