JP Morgan Chase’s second-quarter profit fell 28% as the bank built reserves for bad loans by US$428 million and suspended share buybacks.
All eyes are on US’ second quarter earning report by large corporations, analysts are already expected poor results as reflected by the bank’s latest profit announcement. The share buyback suspension action reflects Chairman and CEO Jamie Dimon’s increasingly cautious stance. “The US economy continues to grow and, both the job markets and consumer spending, and their ability to spend remains strong”
“But geopolitical tension, high inflation, waning consumer confidence, the uncertainty of how high-interest rates will have to go, and the never before seen quantitative tightening and their effects on global liquidity, combined with the war in Ukraine and its harmful effects on global energy and food prices are very likely to have a negative effect on the global economy,” he said.
Shares of JP Morgan fell 5% in trading, hitting a fresh 52-week low.
