JPMorgan Chase Q2 Results Were Best Of 3 Big Banks Reporting: 'But Numbers Are Distorted By $7.8B Visa Gain'

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Shares of JPMorgan Chase & Co (NYSE: JPM) recovered in early trading on Monday, after tanking on Friday, following the second-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.

  • Oppenheimer analyst Chris Kotowski maintained an Outperform rating, while raising the price target from $215 to $221.
  • Piper Sandler analyst Scott Siefers reaffirmed an Overweight rating, while lifting the price target from$220 to $230.
  • RBC Capital Markets analyst Gerard Cassidy reiterated an Outperform rating and price target of $211.
Oppenheimer: JPMorgan Chase's quarterly results were on the "high side of the expected range, but not enough to make us meaningfully change our 2025 estimates," Kotowski wrote in a note. The earnings came in at $6.12 per share, topping consensus of $5.88, "but the numbers are distorted by a $7.8B Visa gain and a $1.0B contribution to their charitable foundation," he added.

Excluding one-time items, the core operating earnings were $4.53 per share, "driven by core pre-provision earnings at $19.7B versus our $19.1B, only partially offset by NCOs of $2.2B being $0.1B higher than expected," the analyst stated. "The pre-provision earnings beat in turn was driven by expenses being $0.5B better than expected with revenues in line," he further said.

Piper Sandler: "Of the three large banks that reported Friday, JPM's results and outlook were the most straightforward," Siefers said. JPMorgan Chase's underlying fundamentals remain strong, evidenced by its 20% core ROTCE (return on average tangible common shareholders' equity), he added.

There was no change to management's guidance for the full year, "which we continue to consider conservative," the analyst wrote. "JPM is as well positioned as any player in the industry to capture the emerging IB rebound, the risk profile remains excellent, and the company's 15.3% CET1 ratio offers plenty of flexibility," he further stated.

RBC Capital Markets: "Excluding noncore items, we calculate core EPS of $4.27, above our $4.14 estimate and $4.20 consensus," Cassidy said.

"Overall, relative to the uncertainty going into the quarter JPM reported strong core second quarter results driven by better-than-expected fee revenues, partially offset by a higher provision and higher expenses," the analyst wrote. He raised the earnings estimates for 2024 and 2025 from $16.39 per share to $16.64 per share and from $16.51 per share to $16.75 per share, respectively.

JPM Price Action: Shares of JPMorgan Chase had risen by 1.91% to $208.86 at the time of publication on Monday.