JP Morgan securities services Q2 revenue up 17%

JP Morgan’s securities services business posted 17% revenue growth in the second quarter.

It comes as the bank pushes deeper into tokenised assets through Kinexys, its blockchain-based market infrastructure platform.

In an investor statement, Jamie Dimon, Chairman and CEO, said it had delivered record revenue across all of its businesses.

“Performance was strong across the Firm, and revenue in each line of business hit a new record,” he said.

The Wall Street lender reported second-quarter net income of .2bn, or .70 per share, while managed revenue rose 27% year-on-year to a record bn. Excluding gains related to Visa shares and certain equity investments, net income was .9bn.

Within its Commercial & Investment Bank division, securities services revenue increased 17% to .7bn. JP Morgan said the gain was driven by fee growth linked to higher market levels, stronger client activity and increased deposit balances.

The broader Markets & Securities Services business generated revenue of .7bn, up 33% from a year earlier. Equity markets revenue surged 86%, while fixed income markets revenue rose 6%, helping drive robust performance across the division.

Dimon said investment banking activity had accelerated during the quarter, with fees rising 30% to their highest level since 2021. He added that market sentiment remained constructive for continued activity.

The results highlighted the growing importance of securities services as institutional investors seek more efficient ways to manage, settle and safeguard assets across global markets.

That trend is increasingly linked to the development of digital market infrastructure. JP Morgan has been investing in Kinexys, its blockchain-focused business, which aims to streamline payments, settlement and tokenised asset transactions for institutional clients.

Large banks and custodians are racing to modernise post-trade processes as tokenisation moves further into the financial mainstream, with regulators and market participants examining how distributed ledger technology could support faster and more efficient capital markets infrastructure.

JP Morgan, which held roughly tn in assets at the end of June, said securities services continued to benefit from elevated client engagement and market activity during the quarter.

Payments revenue increased 12% to .3bn, supported by growth in deposits and transaction fees. The division has become a cornerstone of JP Morgan’s blockchain ambitions through Kinexys, which is developing tokenised payment and settlement infrastructure for global financial markets.