Second-quarter profit for JPMorgan Chase fell 28 percent from a year earlier as the bank built $428 million in bad loan reserves and suspended share buybacks.
Earnings were $8.65 billion, or $2.76 per share, compared to the $2.88 forecast, according to a Refinitiv survey. The bank also achieved revenues of $31.63 billion, compared to $31.95 billion estimated for the same period.
A year ago, the bank benefited from freeing up a $3 billion reserve, and revenues rose by 1%, driven by higher interest rates, but it is still less than analysts’ expectations.
“We are dealing with two conflicting factors, and we operate on different schedules,” Chief Executive Jamie Dimon said in a statement. Pointing out that the US economy continues to grow, and that the labor market and consumers’ ability to spend consumers are in good health. But geopolitical tensions, high inflation, declining consumer confidence, and uncertainty regarding high rates, combined with unprecedented quantitative tightening and its impact on global liquidity, as well as the war in Ukraine and its detrimental impact on global energy and food prices are very likely to have Negative consequences for the global economy at some point in the future.
JP Morgan’s profit is $8.65 billion, down 28%.
