July 14 (Reuters) – JPMorgan Chase reported a higher second-quarter profit on Tuesday, as robust dealmaking and a pickup in IPOs fueled growth in its investment banking business.
The largest U.S. lender posted a profit of $21.2 billion, or $7.70 per share, in the three months ended June 30, compared with $14.99 billion, or $5.24 per share, a year earlier.
The value of global mergers and acquisitions announced so far this year has surpassed $3 trillion, according to Dealogic data, adding momentum to one of banks’ biggest fee-generating businesses: advising on deals.
While volatility sparked by the Iran conflict and concerns that AI could disrupt traditional software companies dented sentiment briefly and slowed dealmaking, investor appetite recovered quickly.
JPMorgan retained the top spot in global investment banking league tables, generating the highest investment banking revenue in the industry, according to Dealogic data.
Meanwhile, the U.S. IPO market has staged a broad-based recovery after years of drought, led by Elon Musk’s SpaceX, whose more than $2 trillion debut marked the largest listing in history. JPMorgan was a joint book-running manager on the offering.
The recovery also gave private equity and venture capital firms more avenues to exit investments through company sales and public listings.
JPMorgan’s investment banking fees increased 30% in the second quarter from a year earlier, higher than the bank’s earlier estimate.
It was part of several landmark transactions during the quarter, including as co-adviser on NextEra Energy’s $67 billion merger with Dominion Energy and lead active bookrunner on Alphabet’s $85 billion equity offering.
(Reporting by Manya Saini in Bengaluru and Nupur Anand in New York; Editing by Anil D’Silva)
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