JPMorgan stock lower premarket: JPMorgan makes less profit than previously expected

According to the money house, the conflict has already caused around half a billion dollars in balance sheet burdens in the first quarter. The sum includes increased financing costs as well as value adjustments due to increased commodity prices and business partners related to Russia, said the largest US bank on Wednesday in New York.

The first quarter was characterized by “difficult market conditions and unpredictable events,” explained CEO Jamie Dimon in the annual report. “However, we remain optimistic about the economy, at least in the short term.” However, JPMorgan sees significant geopolitical and economic challenges due to high inflation, global supply chain problems and the Ukraine war. The shares of the money house initially went down significantly in pre-market US trading on the NYSE, the price recently buckled by 3.11 percent to $ 127.45.

Even excluding the aftermath of the war and sanctions against Russia, JPMorgan earned significantly less in the first quarter than a year earlier. The money house’s income fell by 5 percent to $31.6 billion. Net income fell 42 percent to around $8.3 billion. This was mainly due to expected loan defaults. The bank set aside almost $1.5 billion for impaired loans – significantly more than experts estimated. This also includes burdens from the Ukraine war and the sanctions against Russia.

A year earlier, JPMorgan released provisions of more than $4 billion that had been formed because of feared loan defaults in the pandemic. As a result, quarterly profit jumped to $14.3 billion at the time.

However, even day-to-day business was no longer so smooth in the most recent quarter. Investment banking made significantly less money due to a lower number of IPOs and securities issues and the end of the stock boom. Profits also collapsed in private customer business. Initially, investors were not impressed that JPMorgan announced that it would buy back its own shares for $30 billion.

/stw/hbr/men

NEW YORK (dpa-AFX)

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