JPMorgan reported 2nd quarter which exceeded the forecasts of wall Street. Income investment division and trade on stock markets has helped to compensate for the loss in the consumer segment. JPMorgan sees a high level of uncertainty, but the Bank is ready to losses, as it has a huge credit reserves and high level of liquidity.
Shares of JPMorgan (NYSE: JPM) responded with growth to the announcement of financial results of 2nd quarter ended 30 June.
Since the beginning of the year, JPMorgan shares have lost almost 30%, as the global pandemic COVID-19 struck the world economy, and the Federal Reserve has lowered rates to zero level, which greatly reduces the profitability of the banking sector.
Today JPMorgan, the largest U.S. Bank by assets, reported a 51% decline in earnings per share to $1,38, however, is as much as $0,34 higher than the analytic estimate of $1.04. The sum of quarterly earnings (net income) decreased to $4,69 billion from $9.65 billion. in the same period last year.
Total quarterly revenue grew 19% and amounted to $33.0 billion, also above estimates of $billion of 30.29 to See a history of revenue and profits JPMorgan for the last 2 years can link.
“Despite some recent positive economic data and a significant, decisive action of the government, we are still faced with great uncertainty regarding the future path of the economy,” said Executive officer Jamie Dimon. “However, we are prepared for all possibilities, as our balance sheet “fortress” allows us to be a “port in a storm””.
JPMorgan has more than $34 billion in credit reserves and liquidity in excess of $1.5 trillion.
In may, Dimon said the U.S. economy is “pretty good chance” to recover in the second half of the year thanks to the reopening of most of the sectors. However, these forecasts may hinder the recent new spike in the incidence of COVID-19, which has already forced some States to suspend “open economies” and close some businesses.
The details of the quarter
The most affected during the quarter was the segment of the consumer banking operations of JPMorgan, whose incomes fell by 26% to $5.1 billion
The greatest growth was in the income of the corporate and investment banking, which grew by 16% to $16.4 billion.
Income from the fixed income market has almost doubled (99%) to $7.3 billion, while income from trading in stock markets increased by 38% to $2.4 billion.
The Bank said it will continue to pay dividends, if “the economic situation does not deteriorate significantly”.
Today, as expected, quarterly reports Wells Fargo (WFC) and Citigroup (C), followed by Goldman Sachs (GS) Wednesday and Morgan Stanley (MS) and Bank of America (BAC) on Thursday.