JPMorgan Q2 net income up 13.4% to $7.03 billion on better loan growth

JPMorgan Chase & Co, the biggest US bank by assets, reported a better-than-expected quarterly profit on Friday as gains from higher interest rates and loan growth more than offset a drop in bond trading.

Trading revenue fell for the first time in five quarters as volatility hit multi-year lows, but the drop was not as bad as expected by a company executive in the run-up to the results.

Executives at big banks warned in recent weeks that trading revenue for the quarter would be down from a year earlier, when client trading surged around UK's Brexit vote.

The quarter benefited from the Federal Reserve raising interest rates for the second time this year in June. The target range for overnight interest rate now stands at 1 percent to 1.25 percent, compared with 0.25 percent to 0.50 percent a year earlier.

"We continued to post very solid results against a stable-to improving global economic backdrop. The U.S. consumer remains healthy," Chief Executive Jamie Dimon, 61, said in a statement.

The bank's net income rose 13.4 percent to $7.03 billion in the second quarter ended June 30.

Excluding a gain from a legal settlement, the company earned $1.71 per share, compared with analysts' average estimate of $1.58 per share, according to Thomson Reuters I/B/E/S.

Markets revenue fell 14 percent, led by a 19 percent decrease in fixed income markets revenue to $3.22 billion.
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