JPMorgan Chase beats Q2 estimates on better-than-expected loan losses

JPMorgan said second-quarter earnings came to $11.9bn, or $3.78 on a per share basis, exceeding estimates for a print of $3.21, while companywide revenues of $31.4bn also beat the $29.9bn predicted by analysts on the Street but was down from the $33.8bn reported in the same quarter a year earlier.

The principal reason for JPM's performance was that, like many big names in the industry, it had set aside billions for loan losses in 2020 but had now begun to release reserves as borrowers managed to maintain payments at a better-than-expected rate.

JPM released $2.3bn set aside for bad loan provisions, giving net income a significant boost in the process.

Chief executive Jamie Dimon said: "This quarter we once again benefited from a significant reserve release as the environment continues to improve, but as we have said before, we do not consider these core or recurring profits.

"Consumer and wholesale balance sheets remain exceptionally strong as the economic outlook continues to improve."

As of 1230 BST, JPM shares were down 1.33% in pre-market trading at $155.90 each.