Compared to analysts’ expectations, the quick report was primarily good from the point of view of earnings per share, as it exceeded expectations by more than 9%, while it was also almost 39% better than a year earlier. From the point of view of revenues, the surprise is less, but mainly thanks to the rising interest rate environment, the annual growth here was also 24%.
Behind the increase in profit is the significant role of the increase in income, which is behind the interest income from higher interest rates, especially in the case of the loan portfolio. The bank’s profit was 13.15 billion dollars, compared to 9.74 billion dollars a year earlier.
The result of the largest American bank was also increased by its acquisition of First Republic Bank in May, which expanded its balance sheet with about 173 billion dollars in loans. Thanks to this and the higher interest rate environment, net interest income at the bank rose by 30% to $22.9 billion.
The financial institution expects a net interest income of 88.5 billion dollars for the whole year, which is higher than previously announced.
CEO Jamie Dimon called the flash report “solid” results, but noted that due to the war in Ukraine and Israel, this could be “the most dangerous time the world has seen in decades.”
The evolution of the JP Morgan exchange rate
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