Unusually, JPMorgan gave the via to earnings season with some bad news, with first quarter profits in 42% decline from a year ago due to the fallout from the Russian invasion of Ukraine, rising inflation and supply chain problems.
The largest US bank for asset she is often seen as a leader in the rest of Wall Street.
JPMorgan reported earnings of $ 8.3 billion, or $ 2.63 per share, in the first quarter of 2022, compared with $ 14.3 billion, or $ 4.50 per share, a year earlier.
Analysts had expected a profit of around $ 2.69 per share, according to Refinitiv data.
And the bank’s chief executive, Jamie Dimon, warned of serious risks to the US economy in future in his unusually brief remarks.
“We remain optimistic about the economy, at least in the short term, and consumer and business balance sheets as well as consumer spending remain at healthy levels, but we see significant geopolitical and economic challenges,” he said.
He explained that the next recession is “entirely possible,” but it won’t go so far as to predict the timing.
The bank’s chief financial officer, Jeremy Barnum, said the bank lost another $ 120 million in the first quarter due to the nickel trade chaos that engulfed the London Metal Exchange in March.
The bank financed the Chinese mining company Tsingshan Holding Group, an educated company in a brief squeeze of more than $ 15 billion at its highest point.
JPMorgan, the largest US lender, reported a 28% decline in investment banking revenues in the first quarter. The bank said bank investment fees fell 31% due to declining equity and debt underwriting activity.
The bank also reported that its board of directors has approved a $ 30 billion share buyback.
Shares were down 1.1% in trading pre-market Wednesday.
At the same time, BlackRock, the largest asset manager of the world, it announced its first quarter results, posting earnings per share of approximately $ 9.52, exceeding the estimate media of analysts surveyed by Bloomberg and set it at $ 8.79.
The company reported revenue of approximately $ 4.7 billion, just below analysts’ estimates of $ 4.8 billion.
Clients have shrugged off the headwinds of adding $ 114 billion to BlackRock’s long-term investment products in the first three months of 2021.
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