Jamie Dimon Warns Of 'Significant Risks' Even As JPMorgan's Q2 Results Smash Wall Street Estimates
Synopsis
Dimon cautioned that while the U.S. economy remains resilient, it is still staring at “significant risks” caused by the Trump administration’s tariff policies.
JPMorgan Chase & Co. (JPM) reported its second-quarter (Q2) results on Tuesday before the opening bell, beating Wall Street expectations thanks to robust trading revenue. However, CEO Jamie Dimon had a warning to share.
In a post-earnings press release, Dimon cautioned that while the U.S. economy remains resilient, it is still staring at “significant risks” caused by the Trump administration’s tariff policies and the broader geopolitical developments.
“Significant risks persist – including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,” Dimon said.
However, it is not all doom and gloom in Dimon’s opinion. He said the finalization of President Trump’s tax bill and the potential deregulation are two positives for the U.S. economic outlook.
JPMorgan’s shares were down 0.3% in Tuesday’s pre-market trading session, despite the earnings beat. However, retail sentiment on Stocktwits turned upbeat as compared to a day ago, hovering in the ‘extremely bullish’ territory.
The bank reported earnings per share (EPS) of $5.24 in Q2, beating an expected $4.48 but lower than the $6.12 it posted in the year-ago period.
JPMorgan’s revenue during the quarter came in at $45.68 billion, higher than the estimated $43.81 billion, but down nearly 10% year-on-year.
Its net interest income registered a 2% increase YoY to $23.3 billion.
JPMorgan also saw a surge in its assets under management (AUM), which grew 18% YoY to $4.3 trillion.
Dimon’s cautionary outlook is not new. The veteran banker has been warning about stagflationary risks to the U.S. economy since the Trump administration announced the “Liberation Day” tariffs in April.
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he said.
JPMorgan’s stock is up more than 20% year-to-date and more than 37% in the past 12 months.
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