JPMorgan Chase & Co. is a world-famous investment bank and financial services holding company. It is worth mentioning that, 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.
Interestingly, this bank is one of America’s big banks along with Bank of America, Citigroup and Wells Fargo.
On Tuesday, JPMorgan Chase released its first-quarter profit that failed to meet the expectations. Even though the bank’s revenue did not decrease as a result of coronavirus pandemic.
Let’s have a look at the results, to learn more about the bank and its challenges. Importantly, the earnings decreased by $6.8 billion. This happened as the bank added billions of dollars to its credit reserves. This decision shows that the bank expects a surge in defaults across the company’s lending businesses. This move makes sense as millions of Americans lost their jobs. Many of them may default on their debts. Companies are also trying to avoid the worst-case scenario but at least some of them may go bankrupt in the nearest future.
JPMorgan Chase and financial results
As can be seen from the information stated-above, coronavirus created a lot of problems even for the major banks such as JPMorgan Chase.
According to the data provided by the bank, earnings per share reached 78 cents, while analysts expected that earnings per share would reach $1,84.
Moreover, in the first-quarter profit fell by 69% to $2.87 billion compared with the same period in 2019. Also, the revenue decreased by 3% to $29.07 billion.
Notably, the coronavirus pandemic had a negative impact on the bank, as profits declined across three of the four main divisions.
Hopefully, there is some good news as well. For example, the trading division of JPMorgan Chase posted a 32% increase in revenue. As a result, the revenue of the trading division reached a record of $7.2 billion.
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