JPMorgan profit beats estimates on lending strength; net interest margin dips

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JPMorgan profit beats estimates on lending strength; net interest margin dips
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JPMorgan Chase & Co reported a better-than-expected quarterly profit on Tuesday ...

) reported a better-than-expected quarterly profit on Tuesday as higher interest income and buoyant consumer lending offset lower activity at its trading desks.

Citigroup similarly reported a decline in net interest margin on Monday, which sent bank stocks lower. The earnings beat was driven by JPMorgan’s consumer bank, Chase, which reported credit card loans were up 2%, credit costs were flat and overall income was up 22%.“We continue to see positive momentum with the U.S. consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our Consumer & Community Banking results,” he said in a statement.

Investors, however, worry that if the U.S. Federal Reserve cuts interest rates in July, it could pressure margins at banks, which have benefited recently from higher rates.

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