JP Morgan Chase price breakout extends following Q2 results update
JP Morgan Chase (JPM) Q2 2023 results highlighted a strong financial performance, with net income and revenue boosted by the inclusion of First Republic Bank.
JP Morgan Q2 earnings
JP Morgan Chase (JPM) Q2 2023 results highlighted a strong financial performance with remarkable growth in net income, net revenue, and net interest income. Despite facing increased noninterest expenses and credit losses, the company's overall financial health remains robust.
Salient features of the results are as follows:
- Net income for the period was $14.5 billion, marking an increase of 67% compared to the prior year’s comparative period. Excluding First Republic, net income still rose by a substantial 40%.
- Net revenue also witnessed a notable growth of 34%, reaching $42.4 billion. Excluding First Republic, the growth was still considerable at 21%.
- Net interest income (NII) experienced an increase of 44% to reach $21.9 billion, driven primarily by higher rates. Excluding First Republic, NII still grew by an impressive 38%.
- Noninterest revenue grew by 25%, amounting to $20.5 billion. Excluding First Republic, the growth was 6%. This increase was mainly driven by higher noninterest revenue from CIB Markets and the absence of certain prior-year losses in Payments. However, it was partially offset by higher net investment securities losses in Corporate.
- Noninterest expenses rose by 11% to $20.8 billion. Excluding First Republic, the increase was 8%. This growth was primarily due to higher compensation expenses, including front office hiring and wage inflation, as well as investments in technology, marketing, and increased legal expenses.
JP Morgan Chase – technical view
The share price of JP Morgan remains in a long-term uptrend, highlighted by the price trading firmly above the 200-day simple moving average (200MA) (blue line).
In the short term, a recent break above dotted trend line resistance level sees 156.90 as the initial upside resistance target from the move. The share price has however moved into overbought territory in the near term.
Traders looking for new long positions into the company might hope to find entry into a pullback from overbought territory towards the 142.60 level.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
