Interest rates and agreement with First Republic boost …

Bloomberg – JPMorgan Chase & Co. (JPM) Analyst expectations for the second quarter, revenue reached a record high. The company’s revenue of $41.3 billion was boosted by strong net interest income of $21.8 billion and a gain of $2.7 billion from the acquisition of First Republic Bank.As announced on Friday.

In May, JPMorgan emerged victorious from a government-sponsored auction to acquire First Republic, outperforming its competitors. The bankruptcy of the First Republic was the fourth for a regional bank in a matter of weeks and became the second largest in US history. This acquisition cemented JPMorgan’s position as the largest bank in the United States.

Shares of JPMorgan rose in early New York trading after the New York-based company raised its full-year guidance for net income. The bank now expects $87 billion, excluding its trading business, compared to the $84 billion it forecast at Investor Day in May.

“The US economy is still resilient,” Jamie Dimon, the bank’s chief executive, said in a statement. “Consumer balance sheets remain healthy and consumers are spending, albeit a little more slowly. Labor markets have softened a bit, but job growth remains strong.”

The results included the creation of a reserve of $1.2 billion related to First Republic. The combined provisions for credit losses were $2.9 billion, with a net reserve formation of $1.5 billion and net write-offs of $1.4 billion.

Although down from the previous year, commercial and investment banking activities exceeded analysts’ expectations, Driven by advances in fixed income trading and underwriting of equity and debt.

Dimon said in the statement that JPMorgan expects “material changes in capital with the completion of Basel III and potential changes in bank liquidity” but “we will manage.” The company repurchased $1.8 billion worth of common stock in the second quarter.

Wells Fargo & Co. also announced (WFC) and Citigroup Inc. (C) reported their results on Friday. The trio will provide a first look at the banks’ performance in a quarter that included regional banking riots and continued rate hikes as the Fed tried to combat inflation.

— With input from Keith Gerstein.

Read more at Bloomberg.com