JPMorgan Drops on Earnings Miss, Suspended Stock Buybacks; Dimon Says Bank ‘Prepared for Whatever Happens’
2022.07.14 14:36
JPMorgan Drops on Earnings Miss, Suspended Stock Buybacks; Dimon Says Bank ‘Prepared for Whatever Happens’
By Senad Karaahmetovic
Shares of JPMorgan (NYSE:JPM) are down over 2.5% after the banking giant reported Q2 results that came in below analyst expectations.
JPMorgan reported EPS of $2.76 on managed revenue of $31.63 billion, which is lower than the consensus of $2.94 on revenue of $31.97 billion.
The bank said its Investment Banking revenue fell 61% to $1.4 billion, much lower than the consensus of $1.92 billion. Moreover, revenues from debt underwriting were $741 million while Street was looking for $934.9 million.
FICC sales & trading, the company’s biggest business by revenue, also missed its target as it came in at $4.71 billion vs consensus of $5.11 billion.
JPMorgan also announced that it would be temporarily suspending its stock buyback plan as it must meet higher capital requirements.
“In our global economy, we are dealing with two conflicting factors, operating on different timetables. The U.S. economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy. 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,” CEO Jamie Dimon said in a press release.
“We are prepared for whatever happens and will continue to serve clients even in the toughest of times,” he concluded.
