Morgan's Profits Surge After First Republic Deal

JPMorgan Chase announced a larger-than-expected jump in second-quarter profits, benefiting from increased interest income from borrowers and the acquisition of First Republic. Net interest income, bolstered by the deal and the U.S. central bank's interest rate hike, reached $21.9 billion, a 44% increase, or 38% excluding the impact of the First Republic deal. The bank expects to record net interest income of about $87 billion for the entire year, surpassing Wall Street's expectations of $83.37 billion, according to Refinitiv data. The bank's profits surged by 67% to $14.47 billion, or $4.75 per share, for the quarter ending June 30. Excluding exceptional costs, the bank's earnings per share were $4.37, exceeding the average analyst estimates of $4 per share.