Home Economy JPMorgan earns 10,085 million in the second quarter, more than double, after releasing provisions

JPMorgan earns 10,085 million in the second quarter, more than double, after releasing provisions

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JPMorgan earns 10,085 million in the second quarter, more than double, after releasing provisions

The US bank JPMorgan Chase posted a net profit of $ 11,948 million (10,085 million euros) in the second quarter as a whole, which is more than doubling the profits of the same period last year, due to the impact of the release of provisions, as reported by the entity this Tuesday.

Specifically, the bank released 2,285 million dollars (1,927 million euros) of the capital that was destined to face possible losses derived from credit defaults. This figure compares with the 10,473 million dollars (8,840 million euros) that the firm had to provision in the second quarter of 2020, during the toughest stage of the crisis generated by the pandemic.

JPMorgan has explained that the release of reserves has been undertaken due to the “improvements” in the economic forecasts of the company. Between April and June, the bank generated new loans worth 1.04 trillion dollars (877,837 million euros), 3% more.

“This quarter has benefited again from a significant release of reserves as the environment continues to improve, but as we have said before, we do not consider this to be key or recurring benefits,” said the president and CEO of JPMorgan Chase, Jamie Dimon.

The bank’s total turnover between April and June was 30,479 million dollars (25,727 million euros), 8% less than in the same period last year. Of this figure, income from fees and commissions also contracted by 8%, reaching 17,738 million dollars (14,972 million euros), while those from interest stood at 12,741 million (10,754 million euros), 8% below the figure obtained a year earlier.

By business segment, the investment banking division contracted 19%, reaching revenues of 13,214 million dollars (11,154 million euros), while the retail banking branch advanced 3%, reaching 12,760 million (10,770 million). millions of euros).

On the other hand, the turnover of the asset and wealth management area increased by 20%, to 4,107 million dollars (3,467 million euros), and the business banking division entered 2,483 million dollars (2,096 million euros), 3% less.

Regarding expenses, JPMorgan allocated 9,814 million (8,284 million euros) in the quarter to salaries and other non-salary benefits, 3% more, while the item of technology, communications and equipment fell 4%, up to 2,488 million (2,096 million euros).

The hiring of external services and professionals increased by 19%, to an expense of 2,385 million dollars (2,013 million euros), while the cost of rents increased 1%, to 1,090 million dollars (920 million euros ).

In the whole of the first six months of the year, JPMorgan Chase posted a net profit of 26,248 million (22,155 million euros), which means multiplying by 3.5 the profits of the same period of the previous year. On the other hand, net turnover increased by 2%, to 62,745 million (52,961 million euros).

As of June 30, 2021, JPMorgan had assets under management valued at 2.987 trillion dollars (2.521 trillion euros), 5% more than in the previous quarter.

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