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JPMorgan reports 8% fall in profits but Goldman Sachs income rises in Q2 2014

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JPMorgan Chase and Goldman Sachs have seen mixed results from their investment businesses.

JPMorgan reported an 8% fall in Q2 2014 profits after declines in its securities trading business.

Net income in the three months to the end of June was $6 billion – a fall of $500 million compared with a year earlier.

However, Goldman Sachs saw a 5% profit rise after higher revenues from its investing and lending business.


JPMorgan Chase and Goldman Sachs have seen mixed results from their investment businesses

JPMorgan Chase and Goldman Sachs have seen mixed results from their investment businesses

The bank earned $1.95 billion in the three months to June 30, up from $1.86 billion in the same period a year earlier.

JPMorgan, the biggest US bank in terms of assets, saw net income from its corporate and investment business drop by $800 million to $2 billion, a fall of 31%.

A decline in bonds and currencies trading by big institutions hit revenue in the bank’s securities trading business.

Nevertheless, the bank said it had seen a “strong performance” in overall investment bank fees.

Its results beat market expectations and JPMorgan shares rose 3% to $57.96 in premarket trading on Tuesday.

JPMorgan’s mortgage business also declined in the quarter, with mortgage lending down 38% to $709m. Mortgage application volumes dropped 54% to $30.1 billion.

US mortgage lending volumes have slowed as mortgage rates have risen. Last week, the largest US mortgage lender, Wells Fargo, reported a 39% drop in mortgage revenue in the second quarter.

Goldman Sachs revenues from currency and commodity trading were down 10% to $2.22 billion, but the firm’s investment business was buoyed by mergers and acquisitions, and equity underwriting.

Goldman Sachs saw net revenue in its investing and lending division jump 46% to $2.07 billion, including net gains of $1.25 billion from investments in equities.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.