JP Morgan is particularly sensitive to changes in the interest rate environment, as it has significant commercial banking activities in addition to investment banking services. Accordingly, the bank benefited from the rising interest rate environment, its total income level increased by around 30% in one year, and it managed to exceed expectations in this area by 6.0%. As a result, earnings per share increased even more significantly, by 72%, and were 19% higher than analysts expected.
Some details from the quick report:
- on the negative side, loan impairment and provisions jumped to $2.9 billion, almost three times the level of $1.1 billion a year earlier, due to the recessionary environment,
- the average deposit portfolio in the second quarter was negatively affected by the American mini-banking crisis and the withdrawal of money market funds, so it decreased by 6% to 2.4 trillion dollars,
- meanwhile, the average loan portfolio rose significantly, by 13% to 1.2 trillion dollars.
Based on CEO Jamie Dimon’s assessment, the American economy shows strong resilience, and the bank also stated that it expects further interest margin expansion.
The evolution of the JP Morgan exchange rate
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