JPMorgan Chase & Co reported a fall in first-quarter earnings on Wednesday, hurt by a slowdown in dealmaking brought on by the Ukraine conflict and a decline in trading revenue.
Investment banking revenue for big banks stalled after the Russian invasion of Ukraine in late February. In the first quarter, the total value of pending and completed deals amounted to about $900 billion by March 29, the lowest since the second quarter of 2020, according to Refinitiv data.
The lender also said its board approved a share buyback plan of $30 billion.
The largest U.S. lender, whose fortunes are often seen as a barometer of the health of the economy, posted a profit of $8.28 billion, or $2.63 per share, in the quarter ended March 31, compared with $14.3 billion, or $4.50 per share, a year earlier.
Analysts on average had expected earnings of $2.69 per share, according to Refinitiv. It was not immediately clear if the reported numbers were comparable to estimates.
The big U.S. banks are reporting results at a time when inflation is at its highest in decades, which could lead the Federal Reserve to hike interest rates more aggressively this year.
While that is good for big lenders like JPMorgan, rapid rate hikes could slow down the economy and scupper a nascent recovery from the pandemic.
Net reported revenue fell to $30.72 billion from $32.27 billion a year earlier.
Other large U.S. banks including Citigroup, Wells Fargo and Goldman Sachs will report results on Thursday, while Bank of America reports results next Monday.
In the same quarter a year earlier, banks had benefited from exceptionally strong dealmaking and trading and the release of funds set aside for loan losses.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU