Disclaimer - Nothing in this post is financial advise
JPMorgan reports earnings - misses on estimates
The largest U.S. bank has posted a further decline in profits in Q2. Reasons for the decline are worsened economic outlooks, but the company missed already lowered market expectations.
JPMorgan reported a 2Q22 net income of $8.6B and EPS of $2.76, the institution earned slightly more in the reporting period than in the first quarter of the year, but 27 percent less than a year earlier.
EPS miss
Analysts had an average expectation of $2.90, compared to the achieved $2.76, the company failed analyst's EPS expectations by 4.83%.
Earnings weaker than expected
On the revenue side, JPMorgan also slightly missed estimates. The reported $31.6 billion was below the revenue forecasts of experts, which expected an average of $31.96 billion, a miss by 1.13%.
Interesting was that developments in various areas diverged significantly: While net interest income increased by almost one-fifth, other income fell by twelve percent. This was due, among other things, to declining fee income in investment banking.
Business Units overview
Consumer & Community Banking:
Net income of $3.1B vs. $5.6B in 2Q21
Revenue of $12.6B, down 1% YoY
Corporate & Investment Bank:
Net income of $3.7B, down 26% YoY
Revenue of $11.9B, down 10% YoY
Commercial Banking:
Net income of $1.0B, down 30% YoY
Revenue of $2.7B, up 8% YoY
Asset & Wealth Management:
Net income of $1.0B, down 13% YoY
Revenue of $4.3B, up 5% YoY
Corporate:
Revenue was $80mm, and net interest income was $324mm compared with a loss of $961mm in the prior year
Shock in buyback program
JPMorgan also shocked investors with news that it will cancel its billion-dollar share buyback program for the time being. After announcing the program only a few months back in April. The company claimed that this action has to be taken to meet higher capital requirements.
Unsurprisingly, the stock initially fell by up to more than 5 percent in pre-market trading, but subsequently stemmed the losses somewhat.
Conclusion - JPMorgan Chase & Co (Ticker: JPM)
Earnings didn't look promising and investors might need to wait for another quarter to see if JPM is doing better again, as current market conditions seem to hamper the company's business.
Disclaimer - Nothing in this post is financial advise
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