JPMorgan Chase earnings beat expectations

JPM Q2 results beats Street, lots of revenue drivers: Analyst
JPM Q2 results beats Street, lots of revenue drivers: Analyst
Strong Q2 for JP Morgan Chase
Strong Q2 for JP Morgan Chase
JPMorgan flashpoints: Kayla Tausche
JPMorgan flashpoints: Kayla Tausche

JPMorgan Chase on Tuesday delivered quarterly earnings that topped analysts' expectations, helped by lower expenses.

The banking giant posted second-quarter earnings of $1.54 per share, up from $1.46 a share in the year-earlier period.

Revenue fell to $24.5 billion from $25.35 billion a year ago.

Analysts expected to post earnings of $1.44 per share on revenue of $24.51 billion, according to a consensus estimate from Thomson Reuters.

JPMorgan shares rose in premarket trading following the announcement. (Get the latest quote here.)

Revenue from fixed-income trading fell 21 percent to $2.93 billion. Adjusted for the sale of a physical commodities businesses last year, it would have fallen 10 percent.

Drexel Hamilton analyst David Hilder said stripping out some nonrecurring items in the earnings-per-share number, the earnings look more in line with consensus and not quite as far above estimates as the headline suggests.

Still, he noted that equity trading revenues rose 27 percent year over year, investment banking fees jumped 4 percent and loan growth was "strong" with core loans up 12 percent.

"You're seeing that there are a lot of positive revenue drivers," he told CNBC's "Squawk Box."

Little is changing for banks quarter to quarter without an interest rate hike from the Federal Reserve, he said. "Once the Fed starts raising rates, there will be a benefit for the large banks, including JPMorgan."

Adjusted for the sale of a physical commodities business and other adjustments, JPMorgan's fixed-income trading would have fallen 10 percent.

JPMorgan was the first of the U.S. banks with large capital markets and investment banking operations to report second-quarter results. Many are expected to report underwhelming bond trading results due to a downturn in bond trading markets in June.

Investor worries spanned the globe last quarter, ranging from the Greek debt crisis to concerns that the U.S. Federal Reserve would not be able to raise interest rates this year.

JPMorgan's non-interest expenses declined 6 percent to $14.50 billion in the quarter, helped by business simplification and lower legal and mortgage banking expenses.

"We've made good progress this quarter, including meeting regulatory requirements, reducing non-operating deposits, and adding to our capital," Chief Executive Jamie Dimon said in a statement. "We are also on target to deliver on our expense commitments."

JPMorgan and Wells Fargo kick off a week in which a slew of large banks report quarterly earnings. Wells Fargo posted earnings that were in line with expectations.

JPMorgan shares have climbed nearly 9 percent this year. They have outperformed the broader banking sector, as the S&P 500 Financials sector is nearly flat in the same period.

Read MoreWhy this may be a golden opportunity to buy bank stocks

Investors have looked for the bank to trim costs amid a tougher regulatory environment. JPMorgan will create 1,000 jobs and move more than 2,500 from New York City to New Jersey, receiving annual tax credits per job of $500 to $5,000, state authorities said last week.

JPMorgan reportedly plans to cut more than 5,000 jobs by next year. Despite efforts to trim its workforce, the bank still hires about 40,000 employees annually.

Disclosure: The analyst does not own shares of JPMorgan Chase, but his family does. Drexel Hamilton owns greater than a 1 percent share of the stock and provides investment banking services to JPMorgan.

—CNBC's Terri Cullen and Tom DiChristopher and Reuters contributed to this report