JPMorgan

JPMorgan earned 22% less in 2022 than in 2021

In the fourth quarter the entity earned 11,008 million dollars, 6% more than in the same period of 2021

The main bank in the United States, JPMorgan Chase, reported this Friday net profits of 37,676 million dollars in 2022, 22% less than the previous year.

The accumulated billing for the year, on the other hand, increased 6% year-on-year and stood at 128,695 million dollars, according to a statement. The bank’s annual accounts were weighed down by the accumulation of reserves against credit defaults (some 6.4 billion dollars) despite the fact that it has generally been favored by the rise in interest rates.

In the fourth quarter, the most followed by Wall Street analysts, the entity earned 11,008 million dollars, 6% more than in the same period of 2021, and revenues amounted to 34,547 million dollars, 18% more.
In the past three months, the company has set aside some $1.4 billion for reserves and credit charges of $887 million, indicating that its outlook has “moderately deteriorated” and that it is now considering a “mild recession” scenario in USA

The company’s chief executive officer, Jamie Dimon, said in the note that the economy “remains strong today, with consumers still spending their excess cash and businesses healthy,” but warned of a number of risks.

”However, we still do not know the final effect of the difficulties derived from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, the persistent inflation that is eroding purchasing power and that has boosted some rates of higher interest rates, and the unprecedented quantitative tightening (of the Federal Reserve),” he added.

In the breakdown of the last quarter by sections, consumer banking was the most profitable (4,500 million, 10% more) while investor banking stood out for its decline (3,300 million, 27% less).

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