JPMorgan Posts 28% Dip in Net Income for Q2 2022

JPMorgan Chase, one of the world’s largest investment banks, recently published its financial results for the second quarter of 2022 (Q2 2022). In the mentioned period, the financial services provider took a major hit in net income as the figure reached $8.6 billion, which is down by approximately 28% compared to the same period last year.

The net reported revenue in the second quarter increased marginally to $30.7 billion. Among growing business segments, JPMorgan saw decent growth in Total Markets revenue as the number touched $7.8 billion, which is up by almost 15% compared to Q2 2021.

“In Consumer & Community Banking, combined debit and credit card spending was up 15% with travel and dining spend remaining robust. Card loans were up 16% with continued strong new account originations. In the Corporate & Investment Bank, we generated strong Markets revenue, up 15% as we helped clients navigate volatile market conditions,” Jamie Dimon, the Chairman and Chief Executive Officer at JPMorgan, said.

“Global IB fees were down 54% compared to a record last year, in a challenging macro environment. Commercial Banking loans were up 7% on strong new loan originations and higher revolver utilization. Asset & Wealth Management delivered solid results as the impact of higher rates and loan and deposit balances more than offset the decline in market levels,” he added.

Gross Investment Banking Revenue

According to the details shared by JPMorgan in its quarterly report, the bank’s Investment Banking division saw a major drop in revenues. The Gross Investment Banking revenue plunged by 32% in the recent quarter. The net income related to the Corporate and Investment Banking (CIB) came in at $3.72 billion, compared to almost $5 billion in the second quarter of 2021.

“Banking revenue was $3.2 billion, down 37%. Investment Banking revenue was $1.4 billion, down 61%, predominantly driven by lower Investment Banking fees,” JPMorgan highlighted.