JPMorgan Chase reported its second quarter earnings that were lower than expected by analysts. The banking giant also announced that it is halting share buybacks. It mentioned setting aside $428 million for potential loan losses.
The bank’s earnings plunged -28% from the year-ago quarter to $8.65 billion or $2.76 per share Thursday, missing the analyst expectations of $2.88 per share (according to data from FactSet).
Total revenue slumped -27.6% year-over-year to $31.63 billion, also falling short of the $31.95 billion predicted by FactSet analysts.
Investment banking revenue plunged -61% to $1.4 billion, hurt by lower fees from deals and debt and equity issuances. Trading revenue, however, was up +15% on increases in both fixed income and equity trading revenues.
Profits at the consumer bank decreased +45% and profits at the investment bank fell -26%. The losses were partially offset by a +15% increase in trading fees in the second quarter.
“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,” CEO Jamie Dimon mentioned in a statement.
The bank reported $1.1 billion in provision for credit losses. Last year, it released $3 billion from its reserves.