JPMorgan Chase reports higher profits, warns inflation could linger
JPMorgan Chase Bank in New York City, U.S., REUTERS/Caitlin Ochs/File photo
New York, United States — JPMorgan Chase reported higher profits Friday on the lift from elevated interest rates and service fees as the bank’s chief executive cautioned about geopolitical uncertainty and the risk of persistent inflation.
Profits were $13.4 billion, up six percent from the year-ago period, boosted by higher net interest income — the benefit from charging more for loans, subtracting the hit from paying higher interest to depositors.
READ: US stocks tumble as major banks report earnings
JPMorgan, which also cited increased asset management and investment banking fees as positive drivers, reported revenues of $41.9 billion, up nine percent.
Markets were a weak spot, with trading revenue dropping for fixed income and flat for equities.
Chief Executive Jamie Dimon touted “strong results” in the period, but flagged a number of concerns even though “many economic indicators continue to be favorable,” he said in a press release.
READ: Apple, other tech shares bounce after mixed inflation data
These include “terrible” ongoing wars, a large number of “persistent inflationary pressures” and shifting monetary policy to one of “quantitative tightening,” Dimon said.
“We do not know how these factors will play out, but we must prepare the firm for a wide range of potential environments to ensure that we can consistently be there for clients,” Dimon said.
The bank expects the boost from higher interest rates on profits to erode or “normalize” over time, Dimon said.
Shares fell 2.7 percent in pre-market trading
