JPMorgan Chase’s JPM 1.72%increase; green up pointing triangle first-quarter earnings rose 9% but the bank raised concerns over a slowing global economy that could cause loan losses and paralysis in the capital markets.
The bank reported a profit of $14.64 billion, compared with $13.42 billion a year ago. Earnings per share were $5.07, beating analyst expectations of $4.63.
Revenue rose 8% to $45.31 billion.
“The economy is facing considerable turbulence,” JPMorgan Chief Executive Jamie Dimon said. “We continue to believe it is prudent to maintain excess capital and ample liquidity in this environment.”
The bank’s economists and Dimon have said that they expect the U.S. economy will head into recession later this year, largely due to the impact of tariffs on China and the risk that President Trump will impose more later.
Even accounting for the pause Trump announced Wednesday, the bank’s view is that “a contraction in real activity later this year is more likely than not,” JPMorgan’s chief U.S. economist Michael Feroli said in a note on Wednesday to clients.
Dimon raised the alarm about corporate confidence on Wednesday during an appearance on Fox Business, which made it to the ears of Trump before he decided to call timeout on his tariff plan.
“We are just starting to hear from clients what they think” about tariffs, Dimon said on Friday. “It can have a significant effect on some people and not so significant on others.”
Wells Fargo WFC -2.54%decrease; red down pointing triangle and Morgan Stanley MS -0.86%decrease; red down pointing triangle also posted higher profits for the first quarter that topped expectations. But executives Friday were echoing Dimon’s concern about the future.
Wells Fargo CEO Charlie Scharf said the bank expected continued volatility and uncertainty and a slower economy. While he expressed support for Trump to tackle barriers to fair trade, he said there are risks associated with such “significant actions.”
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
