new York A slowdown in M&A activity amid the Ukraine conflict and a slowdown in trading activity weighed on US bank giant JP Morgan’s first-quarter earnings. The financial institution made a profit of $8.28 billion from January to March – a decline of 42 percent within the year, as the largest US bank announced on Wednesday.
The institute made earnings per share of $2.63, compared to $4.50 a year earlier. Analysts had expected an average of $2.69 per share. The major bank’s titles in New York lost 1.9 percent after the quarterly figures were published.
From January to March, what global banking regulators see as the most important money house for the stability of the global financial system achieved net income of $30.72 billion – a decline of around five percent. The institute also announced plans for a $30 billion share buyback.
JPMorgan boss Jamie Dimon was optimistic about economic development, at least in the short term. However, with the increased inflation, the tense supply chains and the war in Ukraine, major challenges lie ahead.
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As a result, the bank set aside nearly $1.5 billion for impaired loans in the first quarter. A year earlier, the institute had released more than $4 billion in reserves, pushing quarterly profit to $14.3 billion.
JP Morgan is the first major US bank to present its figures for the first quarter. Competitors Morgan Stanley, Goldman Sachs, Citi and Wells Fargo will follow on Thursday. Bank of America plans to publish its quarterly figures on Monday.
A year ago, US financial houses were still benefiting from a boom in takeovers and mergers and from the release of provisions for impending loan losses.
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