The company outperformed the banking sector, which was lagging far behind in the wider market this year amid concerns about US banking ties with Russia and concerns about a slowdown. However, shares of JPMorgan have fallen 18.7% from year to date. JPMorgan released its quarterly results on Wednesday. These were the key figures against expectations, according to analysts polled by Bloomberg.
Revenue (adjusted): $ 31.59 billion versus $ 31.44 billion expected, $ 30.35 billion in the fourth quarter Earnings per share (adjusted): $ 2.63 per share versus $ 2.72 expected, $ 3.33 per share in the fourth quarter
Wednesday’s report reflected an innocent quarter on banking power following a volatile Wall Street start to the year as the Russia-Ukraine war and economic uncertainty weighed on markets. JPMorgan reported lower-than-expected net income for the first quarter of $ 8.3 billion, or $ 2.63 per share, down 42% from the same period in 2021, when the bank reported a profit of $ 14.3 billion, or $ 4 billion. , $ 50 per share. Investment banking also fell short of analysts’ estimates of $ 2.1 billion, compared to the $ 2.25 billion expected as geopolitical tensions in Eastern Europe hampered deal activity in the first quarter. Investment banking commissions fell 31 percent due to lower equity and debt activity, the bank said, noting the lowest commissions recorded since the first quarter of 2021. Shares of JPMorgan fell 1% before trading to $ 130.10 at 7:28 a.m. ET. “We remain optimistic about the economy, at least in the short term, but we see significant geopolitical and economic challenges in the future due to high inflation, supply chain issues and the war in Ukraine,” CEO Jamie Dimon said in a statement. The banking giant also said it had added $ 902 million to credit reserves for possible loan losses, warning of a “high chance of downside risk”. The story goes on In the same quarter last year, banks’ profits benefited significantly from strong trading activity and the release of funds earmarked for possible losses due to COVID. The bank reported an improvement in lending growth, with lending growing by an average of 5%. Among the measurements that investors will closely monitor this year are the company’s net interest income, the difference between the bank’s profits from its lending activities and the interest it pays to depositors. The rate is expected to benefit from higher interest rates, but if the US Federal Reserve raises interest rates too sharply and drives the economy into recession, JPMorgan lending could be hit. Net interest income for the first quarter was $ 14.0 billion, up 7%, the bank said, citing balance sheet growth and higher interest rates. Mattapan, MA – November 23: JP Morgan Chase CEO Jamie Dimon spoke during a visit to Mattapan, MA about a ribbon cutting center for the new Mattapan Chase Community Center on November 23, 2021. (Photo by David L. Ryan / The Boston Globe via Getty Images) Following the results of the first quarter, JPMorgan CEO Jamie Dimon is expected to share his views on the geopolitical risk and the Fed’s monetary tightening plans. The head of the bank warned in his carefully read annual letter to shareholders earlier this month that Russia’s continued invasion of Ukraine is expected to substantially slow down the US economy and the global economy. Dimon is also likely to face questions about his comments about JPMorgan’s $ 1 billion loss over time due to the war. He did not specify the exact time frame or how the estimate was calculated, but a JPMorgan spokesman told Yahoo Finance following the release of Dimon’s letter that the loss could be related to potentially war-torn assets. Although the bank said it was not concerned about its immediate exposure to Russia, the foundation was concerned about the “side effects” of the crisis and sanctions on so many companies and countries. This post is breaking. Check again for updates. – Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard and LinkedIn
