Despite having to set aside nearly $10.5 billion to cover future potential loan losses, JPMorgan Chase (NYSE: JPM) generated almost $4.7 billion in profits in the second quarter ($1.38 in earnings per share), beating most estimates. That's down about 51% from the second quarter of 2019, but up 77% from the first quarter of the year. America's largest bank generated roughly $33.8 billion in total revenue, its highest quarterly revenue amount ever. This explains how the bank managed to generate profits despite a quarterly loan-loss provision that is larger than any quarterly provision the bank took during the Great Recession. This quarter's provision is also higher than the roughly $8.3 billion JPMorgan set aside to cover future potential loan losses last quarter. Image source: Getty Images. Revenue and profits were heavily buoyed by the corporate and investment bank, which generated nearly $5.5 billion in profits on net revenue of almost $16.4 billion. "Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy," CEO Jamie Dimon said in a statement. "However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm." Net charge-offs -- debt unlikely to be collected by the bank, a good indicator of ultimate write-offs -- remained low for the quarter at $1.6 billion, up slightly from the $1.4 billion in net charge-offs in the second quarter of 2019. Despite net charge-offs remaining low, there is still trouble on the horizon. Total non-performing assets, which is largely composed of loans that haven't received a payment in at least 90 days, reached $8.4 billion at the end of the second quarter, up 60% from the second quarter of last year and 35% higher than the first quarter of this year. There are also still many borrowers on deferral plans, including 7.4% of borrowers in the auto loan portfolio and 6.9% of borrowers in the home loan portfolio. The bank's common equity tier 1 ratio (a measure of a bank's core capital to total risk-weighted assets, and a metric closely watched by regulators) rose to 12.4% at the end of the quarter, up from 11.5% at the end of last quarter. That will provide JPMorgan with some breathing room from its new required CET1 ratio of 11.3% in October. 10 stocks we like better than JPMorgan ChaseWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and JPMorgan Chase wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source