09:23 AM EDT, 07/15/2025 (MT Newswires) -- JPMorgan Chase ( JPM ) reported better-than-expected second-quarter results on Tuesday as investment banking activity gained momentum amid improving market sentiment, though Chief Executive Jamie Dimon warned that the US economy still faces substantial risks, including from tariffs.

The banking giant's per-share earnings came in at $5.24 for the June quarter, down from $6.12 the year before, but above the FactSet-polled consensus of $4.48. The result included an income tax benefit of $774 million due to the resolution of certain tax audits and the impact of tax regulations finalized last year related to foreign-currency translation gains and losses. Excluding this item, JPMorgan's ( JPM ) earnings came in at $4.96 a share.

Consolidated revenue fell 11% to $44.91 billion, but topped the Street's view for $43.81 billion. Net interest income inclined 2% on a managed basis to $23.31 billion. Noninterest revenue dropped 21% to $21.7 billion on a reported basis and by 20% on a managed basis to $22.37 billion.

"We reported another quarter of strong results," Dimon said in the earnings release. "Each of the lines of business performed well."

Revenue in the commercial and investment banking segment increased to $19.54 billion from $17.92 billion in the prior-year period, amid a 7% gain in investment banking fees. "(Investment banking) activity started slow but gained momentum as market sentiment improved," according to Dimon.

JPMorgan's ( JPM ) co-chief executive of commercial and investment bank, Troy Rohrbaugh, told analysts at the bank's investor day in May that the lender was expecting investment banking fees to be down by a mid-teens percentage figure on an annual basis in the second quarter.

The world's largest economy remained resilient in the quarter, while the finalization of the tax reform and potential deregulation are "positive" for the economic outlook, Dimon said Tuesday. However, uncertainties related to tariffs and trade, deteriorating geopolitical conditions, high fiscal deficits, and elevated asset prices continue to pose "significant" risks to the economy, the CEO added.

US President Donald Trump reportedly said Monday that the US will impose "very severe tariffs" on Russia in the absence of a deal in 50 days. In social media posts Saturday, Trump revealed plans to impose 30% tariffs on the European Union and Mexico, effective Aug. 1.

"As always, we hope for the best but prepare the firm for a wide range of scenarios," Dimon said.

Consumer and community banking revenue improved 6% to $18.85 billion in the second quarter, amid gains in banking and wealth management and card services and auto.

Corporate revenue plummeted 85% to $1.54 billion amid the absence of last year's net gain related to Visa shares. Asset and wealth management sales rose to $5.76 billion from $5.25 billion a year ago.

Assets under management jumped 18% to $4.3 trillion amid continued net inflows and higher market levels, JPMorgan ( JPM ) said. The bank's provision for credit losses narrowed to $2.85 billion from $3.05 billion in the 2024 quarter, including net charge-offs of $2.4 billion and a net reserve build of $439 million.

For the full year 2025, the bank expects net interest income of about $95.5 billion, according to an earnings presentation. In April, it expected the metric to come in at roughly $94.5 billion.