Profit At JPMorgan Jumps 67% In The Second Quarter

(CTN News) – Banking giant JPMorgan Chase’s profit increased by 67% over the same period of the previous calendar year, compared to the same period in the previous year.

In a statement released Friday, AFP reported that the US financial services sector reported a boost in profits in the second quarter due to higher interest rates. Executives of the firm described the US economy as “resilient” but facing risks at present, AFP reported.

In the same period a year ago, the company made $14.5 billion in profits, which is an increase of 67% from the same period of a year ago, and revenues were up by 34% to $41.3 billion, which is an increase of 34% from a year ago.

As JPMorgan’s Chief Executive Jamie Dimon said in an interview, consumers are still spending, but their “cash buffers are slowly being drained.”

As part of the announcement, JPMorgan announced that it had acquired First Republic Bank in a government-orchestrated auction last spring after the smaller lender suffered a run on its deposits, which led to the acquisition of the bank.

One of the factors contributing to JPMorgan’s earnings was a $2.7 billion one-time gain on the sale of First Republic, included in its earnings.

However, the acquisition also increased JPMorgan’s credit costs in the third quarter as a result of the acquisition. As a precaution against bad loans, the bank added a reserve of $1.5 billion to its reserves.

As a result of the exclusion of First Republic from this figure, JPMorgan has calculated that it would be $326 million instead, according to its press release.

Asked about the economy’s prospects, Dimon expressed cautious optimism.

In his remarks, Dimon noted that the US economy is showing signs of resilience. It is important to note that consumer balance sheets remain strong, and consumers are spending, although somewhat more slowly than they were in the past few months. Labor markets have softened somewhat, but job growth remains strong.

“Nevertheless, there are still salient risks in the immediate view,” he said, pointing out a variety of issues including “stubbornly high” inflation rates, the Federal Reserve’s unprecedented “quantitative tightening” policies as well as the war in Ukraine.

Both earnings per share and revenues of the company exceeded analyst expectations as a result of the results. In pre-market trading, shares of the company rose by 3.2% to $45.10.

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