We suggested previously that the stage was set for some upside surprises when it comes to big bank earnings. JPMorgan Chase ended up soundly beating analysts' estimates when it announced a second-quarter profit of $5.4 billion, or $1.28 a share, easily beating the average estimates of $1.21 a share.

The more striking good news was that revenue rose to $26.8 billion, up 7 percent year over year and 6 percent sequentially. The earnings surge was powered in part by $1 billion in loan loss reserve reversals. That was more than offset however by a #1.3 billion addition to reserves to cover legal costs. Investment banking fared decently as fees were up nearly 40 percent. Fixed Income and Equity Markets revenue rose to $5.5 billion, compared with $4.6 billion in the prior year, despite a weak trading environment.

It could've been much worse. This certainly raises hopes that earnings at peer banks will likely wise surprise on the upside. Citigroup will be in the spotlight next. Is another upside surprise in the making?  

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- here are the results

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Earnings season may bring upside surprises