JPMORGAN’S PROFIT SINKS 51% IN 2ND QUARTER
JPMorgan Chase, the nation's largest bank, reported a 51% plunge in second-quarter profits as provisions for credit losses spiked and the shape of the recovery became increasingly uncertain, Julia Horowitz and Matt Egan reported for CNN Business late on July 14, 2020.
JPMorgan reported second-quarter profits of $4.7 billion, down from $9.7 billion a year ago. Yet per-share earnings only fell to $1.38, easily beating Wall Street's expectations. Revenue jumped 15% to a record $33 billion, topping estimates. Jamie Dimon, JPMorgan's CEO, struck a cautious note about the road ahead.
"Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy," Dimon said in a statement. "However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm." CFO Jennifer Piepszak said the bank is prepared for double-digit unemployment through the first half of next year. That would be far worse than the Federal Reserve's projection for the unemployment rate to drop to 9.3% by the fourth quarter of this year.