JPMorgan's Q2 earnings beat forecasts as investment banking revenue surges 91%

JPMorgan Chase reported second-quarter earnings on Tuesday that beat the consensus estimates of analysts polled by Bloomberg, reflecting strong growth in investment-banking fees and trading revenues.

The banking titan's net revenue rose 15% to $33.8 billion, but its efforts to shore up its credit reserves meant its net income tumbled 51% to about $4.7 billion.

The relatively robust results sent JPMorgan's shares up 1.9% in pre-market trading.

Read more : UBS says buy these 18 diamond-in-the-rough stocks that will offer massive gains over multiple years, even as their underlying industries suffer Here are the key numbers: Net income: $4.69 billion versus $3.27 billion estimated Earnings per share: $1.38 versus $1.01 estimated Revenue: $33.8 billion versus $30.6 billion estimated "We earned $4.7 billion of net income in the second quarter despite building $8.9 billion of credit reserves because we generated our highest quarterly revenue ever, which demonstrates the benefit of our diversified global business model," CEO Jamie Dimon said in the earnings release. Dimon highlighted "much uncertainty" around the current economic outlook, but trumpeted JPMorgan's strong finances. "We are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm," he said. "We ended the quarter with massive loss-absorbing capacity over $34 billion of credit reserves and total liquidity resources of $1.5 trillion, on top of $191 billion of common-equity tier 1 capital, with significant earnings power that would allow us to absorb even more credit reserves if needed," he added. Read more : A Wall Street investment chief dispels the notion that surging stocks are disconnected from the economy and lays out 3 reasons why the market will continue to climb over the next year JPMorgan's corporate and investment bank was its standout segment. Net revenue soared 66% there to a record $16.4 billion as investment-banking revenue surged 91% and markets revenue jumped 79%. The latter gain reflected a 99% rise in fixed-income revenues and a 38% increase in equity revenues. The division's revenue growth fueled an 85% increase in its net income to $5.5 billion. Net revenue also rose 5% in JPMorgan's commercial banking unit and 1% in its asset and wealth management division. However, the commercial banking division swung from $1 billion in net income in the second quarter of last year to a net loss of $691 million, reflecting a $2.4 billion provision for credit losses. Net income also fell 8% in the asset and wealth management division due to roughly $220 million in similar provisions. Meanwhile, JPMorgan's consumer and community banking division posted a 9% drop in net revenue, as consumer and business banking revenues slumped 26%. It also boosted its credit-loss provision by $4.7 billion to over $5.8 billion, resulting in a net loss of $176 million, compared to $4.2 billion in net income in the same period last year. JPMorgan's earnings fell more than 70% in the first quarter as it built up credit reserves in response to the coronavirus pandemic. It also reported a plunge in net income to $2.9 billion, its lowest level since 2013. NOW WATCH: How waste is dealt with on the world's largest cruise ship See Also: Elon Musk is now officially richer than Warren Buffett. Here's why that doesn't tell the full story of the billionaires' wealth. A portfolio manager invested in Berkshire Hathaway explains why Warren Buffett could still be a post-pandemic winner, even as naysayers call him 'washed up' 'Blank check' companies have seen a surge in popularity this year. Here are 6 high-profile SPACs to watch in 2020.