JPMorgan Chase (NYSE:JPM) is stepping up the securitization of its loan portfolio, which includes mortgages, auto, and credit card loans. This move comes in response to impending U.S capital requirements and is being facilitated by the bank’s recent acquisition of First Republic Bank (OTC:FRCB). JPMorgan has actively participated in deals that cumulatively amount to $62.5 billion, showing its commitment to the securitization market.

The bank’s strong performance in Q2, with earnings per share hitting $4.75 and revenue reaching $41.31 billion, has led to a hike in its quarterly dividend by 5% to $1.05 per share. This increase followed the bank’s successful passage of the Federal Reserve’s stress test.

On the other hand, Tower Bridge Advisors has reduced its holdings in JPMorgan by 14.6% in the second quarter. Despite this, amidst the implementation of Basel III rules, JPMorgan continues to exhibit resilience. The bank anticipates a net interest income of nearly $87 billion for 2023 and has received approval for a lower Stress Capital Buffer commencing in Q4 2023.

Both Credit Suisse and Royal Bank of Canada have issued positive target prices for JPMorgan.