JPMorgan Chase
Q2 2022 Earnings Call
Jul 14, 2022, 8:30 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's second quarter 2022 earnings call. This call is being recorded. [Operator instructions] We will now go live to the presentation.
Please stand by. At this time, I would like to turn the call over to JPMorgan Chase's chairman and CEO, Jamie Dimon; and Chief Financial Officer Jeremy Barnum. Mr. Barnum, please go ahead.
Jeremy Barnum -- Chief Financial Officer
Thanks, operator. Good morning, everyone. The presentation is available on our website, and please refer to the disclaimer in the back. Starting on Page 1.
The firm reported net income of $8.6 billion, EPS of $2.76 on revenue of $31.6 billion, and delivered an ROTCE of 17%. Touching on a few highlights. We had another quarter of strong performance in markets, which generated revenue of nearly $8 billion. Credit is still quite healthy, and net charge-offs remain historically low.
And there continue to be positive trends in loan growth across our businesses, with average loans up 7% year on year and 2% quarter on quarter. On Page 2, we have some more detail. Revenue of $31.6 billion was up $235 million or 1% year on year. NII ex Markets was up $2.8 billion or 26%, driven by higher rates and balance sheet growth.
NIR ex Markets was down $3.6 billion or 26%, largely driven by lower IB fees and higher card acquisition costs, and markets revenue was up $1 billion or 15% year on year. Expenses of $18.7 billion were up $1.1 billion or 6% year on year, predominantly on higher investments and structural expenses, partially offset by lower volume and revenue-related expenses. And credit costs were $1.1 billion, which included net charge-offs of $657 million and reserve builds of $428 million, reflecting loan growth as well as a modest deterioration in the economic outlook. On to balance sheet and capital on Page 3.
Let's start by talking about our plans for capital management over the coming quarters. The new 4% NCB will raise our standardized CET1 requirement to 12% effective in the fourth quarter, and the 4% G-SIB effective in 1Q '23 further raises this requirement to 12.5%. At Investor Day, we said that we expected SCB to be higher and made it clear that in the near term, share buybacks would be significantly reduced in order to build capital for the increased requirements. In light of the SCB coming in even higher than expected, we have paused buybacks for the near term.