A day after the announced
( PWJ) by Swiss investment bank
buoyed shares in financial services firms on hopes the deal portends further acquisitions, investors got more reason Thursday to like investment bank stocks.
said its quarterly earnings beat Wall Street estimates, on the heels of strong growth in asset management, equities trading and investment banking fees.
Earnings per share for the second quarter were $2.90, an 18.4% increase from the $2.45 Wall Street analyst consensus, according to
First Call/Thomson Financial
. In last year's second quarter, earnings per share were $2.52. Net income for the quarter was up 8% to $542 million, compared to $504 million in last year's second quarter. Revenue was up 13% to $2.479 billion vs. $2.19 billion a year ago.
J.P. Morgan, based in New York, saw revenue from asset management rise 19% to $409 million. Revenue from investment banking was up 4% to $426 million, while revenue from equities trading rose 31% to $504 million on the strength of both derivatives and cash securities.
Expenses for the quarter rose 17% as a result of performance-related bonuses doled out to employees and investments in equities, investment banking and e-finance initiatives.
J.P. Morgan stock closed Wednesday up 4 5/8, or 4%, to 122 9/16.