JPMorgan Chase 2Q Earnings Down 28% From Last Year

Abstract

The financial services company said net income was $8.6 billion, up 4% from $8.28 billion in the first quarter but down 28% from $11.94 billion in the second quarter of 2021. The second-quarter results were driven predominantly by a buildup of net credit reserves of $428 million, compared to a net credit release of $3 billion last year. Jamie Dimon, JP Morgan Chase's chairman and CEO, said the company is dealing with "Two conflicting factors, operating on different timetables," in the global economy "The U.S. economy continues to grow, and both the job market and consumer spending, and their ability to spend, remain healthy," Dimon said. During a conference call and webcast with analysts and news media today, Dimon said the company has always managed through economic storms while continuing to serve its customers and clients. "It's especially bad for lower-income mortgages. We'll originate, but the balance on the books will probably come down." That statement follows the company's decision last month to lay off some employees and reassign others in its mortgage business. At the time, the company cited inflation and rising mortgage rates for slowing the U.S. housing market. In its second-quarter report, the company reported originating $21.9 billion in mortgage loans, down 11% from $24.7 billion in the first quarter and down 44.7% from $39.6 billion in the second quarter of last year.