JP Morgan posts record Q2 profit of $8.32 bn on higher trading revenue

JPMorgan Chase & Co's quarterly profit topped Wall Street's expectations on Friday, driven by much higher-than-expected trading revenue and increased loan demand.

US banks are benefiting from a cut in corporate tax rates, hikes in interest rates and a growing economy that is driving demand from borrowers while holding down loan loss rates. Trading got a boost from increased volatility in the wake of escalating trade tensions between the United States and China.

"We see good global economic growth, particularly in the US, where consumer and business sentiment is high," Chief Executive Officer Jamie Dimon said.

JPMorgan's income rose to $8.32 billion, or $2.29 per share, in the second quarter ended June 30, from $7.03 billion, or $1.82 per share, a year earlier.

Analysts expected the bank to earn $2.22 per share, according to Thomson Reuters I/B/E/S.

Revenue rose 6.5 per cent to $28.39 billion, topping the average estimate of $27.36 billion.

Equity trading revenue rose 24 per cent, while revenue from bond trading was up 7 per cent.