JPMorgan Chase, reporting a 31% increase in its second-quarter net income driven by investment banking, also reported that its credit-card business is stabilizing.
Average loans in credit cards fell 2%, to $122.9 billion, from a year earlier. But CFO Marianne Lake predicted an increase in card business later this year.
"We saw a stabilization at the end of the second quarter after 15 quarters of net run-off," Lake said during the company's earnings call. "We feel we've reached an inflection point and expect some modest growth from here."
The New York banking company's second-quarter net income was $6.5 billion, up from $4.96 billion from a year earlier. Its revenue rose 14%, to $26 billion, from a year earlier.
Much of the 31% increase in JPMorgan's quarterly earnings came from investment banking. Net income from corporate and investment banking rose 19% to $2.8 billion, from a year earlier. That included a 38% rise in investment banking fees, a 50% rise in debt underwriting fees and an 83% increase in equity underwriting fees.
However, JPMorgan Chase's report also provided a weak outlook for traditional banking. Rising rates could cut the mortgage business by at least a third the rest of the year, and commercial loan growth was anemic.