JP Morgan Chase & Co.'s profit rose 5.2 percent in its second quarter as the bank made up for lower revenue by trimming expenses.
JP Morgan Chase & Co. strategically cut expenses to make up for the losses, cutting manpower and through its $330 million gain, while its corporate tax rate plummeted. The tax benefit was its driving force in its ability to defeat stock speculations of $1.43 a share, according to Bloomberg.
Shares of JPMorgan rose 95 cents to $69.04 on Tuesday. They are up 10 percent for the year, more than the 6.2 percent return of the KBW Bank Index.
The bank earned $5.78 billion a share in the last quarter, up from $5.57 billion, or $1.46 a share, a year earlier. The largest U.S. bank generated a net revenue of $23.81 billion, down from $24.68 billion, as reported by Seattle Times.
Meanwhile, Wells Fargo also announced quarterly earnings that were in line with analysts' expectations, posting $1.03 a share versus $1.03 expected, reported CNBC. Both major banks initiated earnings season for major banks on Tuesday.
Wall Street resorted to cost-cutting measures after revenue trading fell in four during the past five years. As the first bank to issue their results, they announced in May to eliminate thousands of jobs and assign their back-office workers at more affordable locations as part of their cost-saving measures, according to Sydney Morning Herald.
JP Morgan Chase & Co. CEO Jamie Dimon said that he may not participate in future calls, but would leave the talking to the bank's chief financial ooficer, Marianne Lake.
In May, JP Morgan Chase & Co. pleaded guilty to a felony charge for its role in manipulating currencies. The bank paid close to $900 million in fines. The bank said that the blame was "principally attributable" to a trader who left their company.
Largest FOREX dealers were accused of conniving to manipulate benchmark rates.
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