JPMorgan Chase & Co (NYSE:JPM) stock rose 0.40% (As on July 14, 1:24:44 AM UTC-4, Source: Google Finance) after the company reported second-quarter earnings Friday that topped analysts’ expectations, as the company benefited from higher interest rates and better-than-expected bond trading. Net income surged 67% to $14.5 billion, or $4.75 per share. JPMorgan’s retail banking division was its main source of strength this quarter. Profit surged 71% in the business to $5.3 billion on a 37% jump in revenue. The bank’s results also benefited from better-than-expected trading and investment banking activity. In May, the bank said revenue from the Wall Street activities was headed for a 15% decline from a year earlier. But fixed income trading revenue only dipped 3% to $4.6 billion, topping the StreetAccount estimate by nearly $500 million. Equity trading revenue of $2.5 billion edged out the $2.41 billion estimate. And investment banking revenue of $1.5 billion topped the $1.42 billion estimate. JPMorgan demonstrated its hold over the rest of the industry during the chaos of the spring by winning a government-run auction to purchase the bulk of operations of First Republic after regulators seized the San Francisco lender.

JPM in the second quarter of FY 23 has reported the adjusted earnings per share of $4.37, beating the analysts’ estimates for the adjusted earnings per share of $4, as per Refinitiv estimate. The company had reported the adjusted revenue growth of 34 percent to $42.4 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $38.96 billion. Revenue gains were fueled by a 44% jump in net interest income to $21.9 billion, which topped the StreetAccount estimate by roughly $700 million. Average loans climbed 13%, while deposits fell 6%.

JPMorgan increased its guidance for 2023 net interest income to $87 billion, which is $3 billion higher than its guidance from May and the bank’s third increase to its NII forecast this year.

Meanwhile, this time around, JPMorgan had the benefit of owning First Republic for most of the quarter. The acquisition, which added roughly $203 billion in loans and securities and $92 billion in deposits, helped cushion JPMorgan against some of the headwinds faced by the industry. Banks are losing low-cost deposits as customers find higher-yielding places to park their cash, causing the industry’s funding costs to rise.