- JPMorgan Chase & Co. (NYSE: JPM) reported a net income of US$8.6 billion in the 2nd quarter of FY-22.
- JPM shares plunged more than 4% on Thursday after its net income falls 28%.
- JPM is the largest bank in the US with a market cap of 314.0 trillion.
JPMorgan Chase & Co. (NYSE: JPM) posted a net income of US$8.6 billion for the second quarter, FY-2022, on Thursday.
Its net income in the year-ago quarter was US$11.9 billion.
It is a bigger-than-expected 28% net income fall for JPM as it set aside a large amount of money to offset potential loss if a recession comes hitting.
Shares of JPMorgan fell more than 4% on Thursday after it said US$1.1 billion has been set aside as a provision to address credit losses. Last year, the release was US$3 billion from its reserves.
JPM reported net revenue of US$31.6 billion in the second quarter. Its net revenue in the same quarter in 2021 was US$31.6 billion.
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JPM is America’s largest bank and of the big four
JPM, which is America’s largest bank, reported its noninterest expense at US$18.7 billion, propelled by continued investments in businesses, including technology, marketing, and higher structural expense.
Its Consumer & Business Banking division’s net revenue was US$6.6 billion, up 9% from the year-ago quarter at US$6.0 billion, predominantly driven by growth in deposits.
JPM’s banking revenue was US$3.2 billion, down 37% from the same quarter in 2021 at US$5.1 billion.
The four biggest US banks are bracing for a record US$3.5 billion of loss provisions for the quarter as they fight against a steep economic slowdown triggered by the US central bank’s aggressive interest rate hike to quash the runaway inflation.
Other US banks that have their earnings reports scheduled this week include Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), and Morgan Stanley (NYSE: MS). Next week will be followed by Goldman Sachs (NYSE: GS) and Bank of America (NYSE: BAC).