JPMorgan reports Q2 earnings miss - as CEO Jamie Dimon sounds the alarm on global growth
REUTERS/Brian Snyder
- JPMorgan's Q2 earnings fell short of Wall Street's forecasts.
- The bank was hit by lower investment-banking fees and card income, while markets income rose.
- CEO Jamie Dimon touted the US economy but issued a bleak outlook for global growth.
JPMorgan Chase reported second-quarter earnings on Thursday that fell short of Wall Street's expectations, sending its stock down as much as 3% in pre-market trading. Net revenue fell in two of its four main divisions, while net income declined in all four segments.
The banking giant was hit by lower investment-banking fees and less card income from retail customers. Those headwinds were only partially offset by higher markets revenue.
JPMorgan also took a $1.1 billion provision for credit losses, including $657 million in net charge-offs or "bad debt" and the net addition of $428 million to its reserves, as it loaned more money and prepared for more defaults given the worsening economic outlook.
Here are the key numbers:
- Revenue: $31.63 billion versus a consensus estimate of $31.97 billion from analysts polled by Bloomberg
- Adjusted net income: $8.65 billion versus a $8.55 billion estimate
- Adjusted EPS: 2.76 versus a $2.88 estimate
CEO Jamie Dimon trumpeted the bank's performance and the health of the US economy, but warned that tightening monetary policy, Russia's invasion of Ukraine, and recent surges in food and fuel costs have darkened the global economic outlook.
"The US economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy," he said.
"But geopolitical tension, high inflation, waning consumer confidence, the uncertainty about how high rates have to go and the never-before-seen quantitative tightening and their effects on global liquidity, combined with the war in Ukraine and its harmful effect on global energy and food prices are very likely to have negative consequences on the global economy sometime down the road."
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