JPMorgan's Q2 Earnings & Earnings Per Share Did Not Meet Expectations
Navigasi - JPMorgan Chase & Co. has released its 2022 second quarter financial report. JP Morgan Chase & Co. (JPM) is a leading financial services company based in the United States ("US"), with worldwide operations. JPMorgan Chase had $3.8 trillion in assets and $286.1 billion in shareholder equity as of June 30, 2022.
|JPMorgan's Q2 Earnings & Earnings Per Share Did Not Meet Expectations|
JPMorgan Chase & Co. JPM, -3.49% shares fell 3.5% in premarket trading on Thursday after the megabank missed its profit target in the face of geopolitical tensions, high inflation and weaker consumer confidence.
The bank also said it was temporarily suspending share buybacks as part of efforts to build capital on its balance sheet to meet stress test requirements.
JPMorgan said earnings fell to $8.65 billion, or $2.76 per share, from $11.95 billion, or $3.78 per share, in the year-ago quarter. Reported revenue rose to $30.72 billion from $30.48 billion. Managed revenue increased to $31.6 billion from $31.4 billion.
Analysts expect JPMorgan Chase to report second-quarter earnings of $2.89 per share on revenue of $31.81 billion, according to FactSet estimates. JPMorgan Chase shares are down 29.3% so far in 2022 at Wednesday's close.
JPMorgan Chase shares slumped 3.5 percent after the bank added to its bad debt reserves and halted buybacks, signaling a more cautious economic outlook. As profits fall, CEO Jamie Dimon warned the economy could be impacted by a surge in inflation, geopolitical tensions and reduced consumer confidence in the future.
Wall Street Fires After Big US Bank Profits Appeared sluggish
The stock market of the United States (US) or Wall Street weakened on Thursday, July 14, 2022 trading as large bank profits disappointed. On the other hand, market participants assess the possibility that the US central bank or the Federal Reserve (the Fed) will further tighten monetary policy and fears of a recession still persist.
At the close of Wall Street trading, the Dow Jones index fell 0.46% or 142.62 points to 30,630.17. The S&P 500 index dipped 0.3% to 3,790.38. The Nasdaq index edged up 0.03% to 11,251.19.
Continuing the trend, Morgan Stanley shares slipped around 0.4% as investment banking earnings fell sharply. Meanwhile, Goldman Sachs shares were down nearly 3%.