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© Reuters. Signage is seen at the JPMorgan Chase & Co. New York Head Quarters in Manhattan, New York City, U.S., June 30, 2022. REUTERS/Andrew Kelly
(Reuters) – JPMorgan Chase & Co (NYSE:) said on Friday it set aside $1.4 billion in anticipation of a mild recession as it reported a better-than-expected quarterly profit on the back of strong performance at its trading unit.
Chief Executive Officer Jamie Dimon said consumers were still spending excess cash and businesses remained healthy but listed a number of uncertainties facing the economy.
“We still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation… and the unprecedented quantitative tightening.”
The bank’s shares fell about 3 percent in premarket trading.
The investment banking unit’s poor run continued in the quarter, with revenues down 57% as corporate executives battened down the hatches to prepare for a potential recession instead of spending on deals.
Trading revenue, however, gained from market volatility as investors repositioned bets to navigate a high interest rate environment.
While fixed income markets trading revenue was up 12%, equity trading revenue was relatively flat, the bank said.
JPMorgan’s profit for the three months ended Dec. 31 was $11 billion, or $3.57 per share, compared with $10.4 billion, or $3.33 per share a year earlier.
Excluding items the company earned $3.56 per share, beating estimates of $3.07.
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