Welcome to the Saturday PRO edition of How They Make Money.
Over 130,000 subscribers turn to us for business and investment insights.
A new earnings season is upon us!
Today, we celebrate the launch of our PRO coverage. 🙌
Let's visualize the performance of 6 companies that reported their earnings this week.
We’ll dive deeper into US Banks’ earnings next week once they have all reported.
Today at a glance:
🏦 JPMorgan: Investment Banking Shines
📉 Wells Fargo: Mixed Signals
💵 Citigroup: Cost-Cutting Pays Off
🥤 PepsiCo: Price-Conscious Snacking
🛩️ Delta Airlines: Turbulence Ahead
⚽️ Man United: Sir Jim Ratcliffe is Here
1. 🏦 JPMorgan: Investment Banking Shines
JPMorgan Chase (JPM) reported Q2 earnings that fell slightly short of expectations if we exclude a one-time gain of $7.9 billion from a share exchange deal with Visa (booked in the Corporate segment). The bank increased its provision for credit losses, signaling caution.
Despite this, investment banking fees surged by 50% (compared to 25%-30% expected) to $2.4 billion, driven by increased dealmaking and capital market activity, with a few large deals closing early.
Net interest income declined slightly compared to the previous quarter, reflecting the ongoing pressure on deposit margins. However, the bank reaffirmed its full-year guidance for a net interest income of ~$91 billion.