JPMorgan Notches Record Revenue on Rates, First Republic Deal

JPMorgan Chase & Co.’s revenue soared to a record in the second quarter, boosted by the Federal Reserve’s interest-rate hikes and its acquisition of First Republic Bank.

The firm’s $41.3 billion in revenue beat analysts’ expectations, fueled by $21.8 billion in net interest income as well as a $2.7 billion gain on its First Republic purchase, according to a statement Friday.

JPMorgan agreed in May to acquire First Republic, beating out rivals in a government-led auction. First Republic was the fourth regional lender to collapse in a matter of weeks, and its failure was the second-largest in US history. The deal made the biggest US bank even bigger.

JPMorgan Notches Another NII Record | Fed's interest-rate hikes help push key revenue source higher

Shares of JPMorgan rose in early New York trading after the New York-based company raised its full-year guidance for NII. The bank now expects $87 billion, excluding its trading business, up from the $84 billion it predicted at its investor day in May.

“The U.S. economy continues to be resilient,” Chief Executive Officer Jamie Dimon said in the statement. “Consumer balance sheets remain healthy, and consumers are spending, albeit a little more slowly. Labor markets have softened somewhat, but job growth remains strong.”