(MENAFN - Baystreet.ca) JPMorgan Chase & Co (NYSE:JPM) released its second-quarter results on Tuesday. The bank stock had strong profit growth with its bottom line rising 16% from the previous year.
It was a record performance that was helped by an income tax benefit that added back $768 million to the company's bottom line.
However, the bank warned that future quarters could be adversely impacted if the Federal Reserve proceeds to cut rates. The bank stock adjusted its forecast net interest income for the year from $58 billion to $57.5 billion but notes it could go lower if rate cuts prove to be aggressive this year.
Currently, JPMorgan expects to see as many as three cuts before the year is over. However, if only one takes place, then it could see its revenue numbers come in a bit stronger than its reduced forecast.
Ultimately, it was still a very strong quarter for the bank stock as it came ahead of analyst expectations for both revenues andprofits. Whether it will be able to continue doing so in future quarters will likely depend on how accurately it has forecast rate cuts for the remainder of the year as they will have a big impact on the company's margins.
The stock was up a modest 1% on the day as the results were certainly a bit mixed for investors. However, year to date the stock has done very well, rising more than 35% since January and it's currently trading near its 52-week high for the year.