JPMorgan Chase & Co. reported first quarter earnings properly beneath Wall Road estimates because the financial institution was pressured to put aside billions in credit score reserves amid the danger of a serious financial downturn as shoppers and companies battle to get again on regular footing.
The financial institution reported first-quarter internet earnings of $2.9 billion or 78 cents a share, lower than half of consensus estimates of $1.84 per share.
CEO Jamie Dimon mentioned the financial institution entered the COVID-19 disaster in a powerful place and that the financial institution stays properly capitalized and extremely liquid, including it carried out properly in a really robust and distinctive working setting.
“Within the first quarter, the underlying outcomes of the corporate have been extraordinarily good, nonetheless given the chance of a extreme recession, it was obligatory to construct credit score reserves of $6.Eight billion, leading to complete credit score prices of $8.Three billion for the quarter,” Dimon mentioned in a press launch.
About three-quarters of the financial institution’s 5,000 branches have remained open in the course of the disaster and the overwhelming majority of the financial institution’s 16,000 ATMs continued to supply a full vary of banking providers to prospects.
In March the financial institution opened a half million card accounts for purchasers and prolonged greater than $6 billion in new and prolonged credit score traces, whereas remaining lively in dwelling lending and auto.
The financial institution additionally loaned greater than $500 million to small enterprise and is supporting the SBA’s Paycheck Safety Program.
The financial institution reported a 69% drop in internet earnings within the quarter to $2.9 billion, or 78 cents, in contrast with year-ago figures. The decreased earnings was primarily pushed by elevated reserve builds. Income fell 3% to $29.1 billion.
Inside its Shopper & Neighborhood Banking section, internet earnings was down 95%, pushed primarily by reserve builds. Web income inside the section was $13.2 billion, down 2%.
Subjects: Earnings Studies, Coronavirus / COVID-19, Cell Banking
Corporations: JPMorgan Chase Financial institution N.A.
