JPMorgan faces recession – Economy & Volkswagen – News

JPMorgan faces recession – Economy & Volkswagen – News


The big US bank JPMorgan Chase has significantly increased its risk provisions because of the negative economic outlook – this is eating into profits. According to its announcement Thursday, the money house earned $8.6 billion in the second quarter, 28 percent less than a year ago. The main reason was the high default terms, which threaten in the event of a major economic downturn. JPMorgan boss Jamie Dimon recently warned of an economic “hurricane.” Now once again emphasized the economic risks, for example from the war in Ukraine and inflation.

“We’re ready for anything,” Dimon assured. JPMorgan will continue to support its clients even “in the most difficult times”. However, analysts expected better quarterly figures. The stock was earlier down nearly 5 percent in pre-market, but then pared losses. Given the high risk of a recession, JPMorgan wants to keep money together. So the financial group is halting a multi-billion share buyback plan that was announced only in April.

The crops are mixed

Day trading hasn’t been bad at all lately. On the revenue side, JPMorgan reported a slight year-over-year increase in revenue under management, up 1 percent to $31.6 billion. However, the results were mixed. While credit and net interest income increased significantly and stock and bond trading also flourished, investment banking collapsed compared to the same period last year. IPOs and mergers, where banks earn a fee, were not uncommon due to the financial market turmoil in recent quarters.


US rival Morgan Stanley felt the same way. Here net profit in the three months to the end of June compared to the previous year fell by almost 30 percent to 2.4 billion dollars, as the financial institution of New York announced. Revenue fell 11 percent to $13.1 billion. The rapid activity in the stock market, where many investors adjusted their positions due to fears of recession and inflation, also caused the division of the business to grow at Morgan Stanley. But that could not save the balance. In addition, the bank set aside 200 million dollars for research in the United States.

© dpa-infocom, dpa:220714-99-24108/3 (dpa)