(New York) The American bank JPMorgan Chase, which announced Friday a jump in its quarterly results due in part to the takeover of First Republic, estimated that the American economy was “resilient” while warning that risks still hovered.
The largest US bank by asset size posted net income of $14.47 billion in the second quarter (+67% year-on-year). Excluding First Republic, it increased by 40%.
JPMorgan came to the rescue of this regional bank in the turmoil in the spring, in the wake of the bankruptcies in March of Silicon Valley Bank (SVB) and Signature Bank. Before taking control, the group led by Jamie Dimon had bailed out its accounts with other major American banks to the tune of 30 billion dollars.
The absorption of this establishment led to a provision of 1.2 billion dollars for this quarter, but generated a gain of 2.7 billion for the financing and investment branch.
The group’s quarterly turnover amounted to 41.30 billion (+34%).
“Virtually all of our lines of business saw continued growth this quarter,” Dimon said in a statement.
“The US economy continues to be resilient. […] Consumers are spending, although there is a small slowdown. The labor market has lost some steam, but job growth remains strong,” he noted.
“That being said, there are still significant short-term risks,” Dimon warned, citing consumers tapping into their woolen socks, underlying inflation remaining “stubbornly” high, public debt was high or that the war in Ukraine continued.
Analyst consensus compiled by Factset was for revenue of $38.66 billion, net income of $12.10 billion and net earnings per share of $3.70 ($4.75 realized). ).
Analysts are particularly interested this season in net interest income (difference between interest received on loans granted to customers and interest paid to savers and creditors). To attract deposits – which provide them with liquidity – the banks have increased the yields offered and therefore cut back on their margins.
For JPMorgan, these revenues jumped 48% over the quarter (excluding First Republic).
Another line scrutinized: that of bad debts, in a context of an increase in the key rates of the Fed and high inflation in 2022. They reached 2.9 billion between March and June (1.7 billion excluding First Republic).