JP Morgan Chase beats expectations

JP Morgan Chase beat analysts' expectations with its latest quarterly earnings, helped by an income tax benefit that boosted its results by $768m.

The Wall Street heavyweight posted record second-quarter profits of $9.65bn for earnings per share of $2.82 - marking a 16% year-on-year increase and coming in ahead of the $2.50 EPS estimate on the Street.

The bank's quarterly revenues also came in ahead of expectations at $29.57bn, a 4% increase on a year ago and above the $28.9bn predicted by analysts.

Regarding the $768m income tax boost, JP Morgan said it was a result of "certain tax audits" that lifted its per-share earnings by $0.23.

However, despite the quarterly beat, JPM cut its forecast for its full-year net interest income by $500m to $57.5bn.

JPM's fixed-income trading division pulled in $3.69bn in revenue, up 7% and ahead of the $3.36bn anticipated, while its equities trading business generated $1.73bn in revenue - a 12% drop that fell short of analysts' expectations for $1.84bn.

As of 1300 BST, JP Morgan Chase shares had slipped 1.68% in pre-market trading to $113.90 each.