NEW YORK CITY, New York: JPMorgan Chase posted a record second-quarter profit on July 14 as a rebound in dealmaking and initial public offerings, coupled with strong trading activity, boosted earnings across its business.

The largest U.S. bank reported profit of US$21.2 billion, or $7.70 per share, for the three months ended June 30, compared with $15 billion, or $5.24 per share, a year earlier. On an adjusted basis, earnings of $6.14 per share topped analysts' estimates of $5.85.

Investment banking fees jumped 30 percent from a year earlier, reaching their highest level since 2021, helped by a revival in U.S. IPOs and mergers. JPMorgan was among the lead underwriters on SpaceX's record-breaking public listing during the quarter.

Trading also remained a bright spot, with markets revenue rising 35 percent. Equity trading revenue surged 86 percent, while fixed-income trading increased six percent. Profit also benefited from a $4.6 billion gain linked to the bank's stake in Visa.

Revenue increased across all major business units, while net interest income excluding markets rose four percent to $23.7 billion. Average loans climbed 10 percent.

The bank raised its 2026 forecast for net interest income excluding markets to $96.5 billion from $95 billion previously. It also increased its expense forecast to $107.5 billion, up from $105 billion, sending shares nearly three percent higher in early trading.

"This strength is being supported by several tailwinds, including AI-driven capital investment, fiscal stimulus and the benefits of more efficient regulation," Chief Executive Jamie Dimon said.

Dimon also warned that geopolitical tensions, persistent inflation, large fiscal deficits and elevated asset prices remain key risks for the global economy.

On artificial intelligence, Dimon said JPMorgan has developed about 1,000 AI applications across areas including risk management, marketing, hedging and research. He said some teams had reduced staffing needs by 30 to 40 percent through AI, although most affected employees had been reassigned within the company.

The strong results mirrored a broader trend across Wall Street. Goldman Sachs and Bank of America also reported higher profits driven by stronger trading and investment banking activity, while Wells Fargo benefited from higher interest income, reinforcing signs of a recovery in dealmaking and capital markets activity.