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Due to high provisions for loans at risk, net profit plunged by around 70 percent year-on-year to just under $ 2.9 billion, as the money house announced in New York on Tuesday. JPMorgan, for example, put back around $ 8.3 billion in loans at risk – around five and a half times as much as a year earlier.
The special boom in stock and bond trading triggered by the week-long stock market turmoil was unable to offset the negative effects. Although earnings in both segments increased by double-digit percentages, the bank’s adjusted earnings decreased overall by three percent to $ 29.1 billion.
Bank boss Jamie Dimon had already prepared the shareholders for a sharp drop in profits in the current year due to the corona pandemic. He expects the economy to experience a severe recession, which could be similar to the global financial crisis in 2008. However, according to Dimon’s account, JPMorgan is also well prepared for a severe crisis.
In early trading, the JPMorgan share on the NYSE rose 3.05 percent to $ 101.76.
/ stw / jha /
NEW YORK (dpa-AFX)
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