The coronavirus created a lot of problems for banks such and JPMorgan Chase is not an exception. Let’s have a look at the first-quarter profit. According to the bank, earnings per share reached 78 cents, whereas analysts expected that earnings per share would reach $1,84.
Furthermore, in the first-quarter profit decreased by 69% to $2.87 billion compared with the same period in 2019. Moreover, the revenue fell by 3% to $29.07 billion.
It is worth mentioning that, profits declined across three out of four main divisions.
Nevertheless, the trading division of JPMorgan Chase posted a 32% increase in revenue. Thus, the revenue of the trading division reached a record of $7.2 billion.
JPMorgan Chase and coronavirus
Let’s have a look at this world-famous investment bank and financial services holding company. According to S&P 500 Global JPMorgan Chase is the largest bank in the U.S. Moreover, it is the sixth-largest bank in the world when it comes to total assets.
JPMorgan Chase is one of America’s big banks along with Bank of America, Citigroup and Wells Fargo.
As stated above, on April 14, JPMorgan Chase released its first-quarter profit that failed to meet the expectations. However, the revenue did not decrease as a result of the coronavirus pandemic.
In the first quarter of 2020, the earnings decreased by $6.8 billion. The investment bank and financial services holding company added billions of dollars to its credit reserves and as a result, earnings decreased by $6.8 billion.
This move shows that JPMorgan Chase expects a surge in defaults across the company’s lending businesses. Unfortunately, millions of Americans lost their jobs. Many of them may default on their debts. Moreover, companies are also trying to avoid the worst-case scenario but at least some of them may file for bankruptcy in the nearest future. The bank wants to be ready for any outcome.