July 15 (Reuters) - JPMorgan Chase ( JPM ) raised its

net interest income forecast for 2025 after strong performance

in its investment banking and trading divisions helped it

surpass profit expectations for the second quarter.

The bank now expects about $95.5 billion of NII, or the

difference between what it earns on loans and pays out on

deposits, compared with an earlier estimate of nearly $94.5

billion.

"The U.S. economy remained resilient," CEO Jamie Dimon said

in a statement. "The finalization of tax reform and potential

deregulation are positive for the economic outlook. However,

significant risks persist - including from tariffs and trade

uncertainty, worsening geopolitical conditions, high fiscal

deficits and elevated asset prices."

Market activity surged as investors seized opportunities and

hedged risks in response to shifting U.S. tariff policies. The

turmoil propelled JPMorgan's ( JPM ) trading revenue 15% higher to $8.9

billion, driven by gains in both fixed income and equities.

Investment banking fees also rose 7% to $2.5 billion,

underpinned by a rise in mergers and acquisitions and debt

underwriting.

Both trading and investment banking performed better than

management's earlier guidance. In May, the bank had projected a

mid-teens percentage drop in investment banking fees, while

trading revenue was expected to grow by a mid-to-high

single-digit percentage.

Headcount fell by more than 1,300 employees to 317,160, but

JPMorgan's ( JPM ) workforce remains the largest among its peers after a

rapid expansion in recent quarters. The bank expects it to be

flat in 2025.

Excluding one-off costs, JPMorgan ( JPM ) earned $4.96 per share,

compared with the $4.48 per share that analysts were expecting,

according to estimates compiled by LSEG.

Provision for credit losses was $2.85 billion, compared with

$3.05 billion a year earlier.

Shares were marginally down before the open.

POLICY CLOUDS OUTLOOK

Investors are closely scrutinizing banks' results and their

executives' commentary this quarter to assess the impact of

tariffs and the tax and spending bill signed into law by

President Donald Trump earlier this month.

The bill is estimated to add more than $3 trillion to U.S.

debt over the next decade, sparking backlash from some

Republicans and Trump allies like Elon Musk who have raised

concerns about fiscal irresponsibility.

However, while uncertainty has clouded the outlook, there

were bright spots for lenders during the second quarter.

JPMorgan ( JPM ) was among 22 large banks that aced the Federal

Reserve's stress tests, enabling it to boost its quarterly

dividend and announce $50 billion in stock buybacks.

The Fed also advanced a proposal to overhaul the "enhanced

supplementary leverage ratio," which could lower the capital

large global banks such as JPMorgan ( JPM ) must hold against relatively

low-risk assets.

The bank's overall profit fell 17% in the second quarter,

but the comparison was skewed because of a nearly $8 billion

one-off gain it had recorded on a share exchange agreement with

Visa last year.