JP Morgan's Q2 Net Income Rebounds, But Below 2019 Level

Tom Burroughes

15 July 2020

reported a sharp quarter-on-quarter jump in group net income for the three months ending June 30 but the figure was far lower than the same quarter a year earlier because of a sharp rise in credit loss provisions. The provisions have surged because of the pandemic impact.

The US bank, which yesterday kicked off the Q2 earnings reporting season, said its net income was $4.687 billion, up from $2.865 billion in the first quarter of this year, but down from $9.652 billion in Q2 2019.

Net revenue rose to $33.817 billion in Q2, up from $29.481 billion a year before, and also rising from $29.01 billion in Q1 this year.

Within the asset and wealth management arm, JP Morgan said net income rose to $658 million in Q2, down a touch from $664 million in Q1 and from $719 million a year earlier. Assets under management stood at $2.5 trillion - a 15 per cent gain.

“Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy. However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm,” Jamie Dimon, group chief executive, said.

The rise in AuM in the asset and wealth management arm was driven by $124 billion of net inflows into liquidity and long-term products, Dimon noted in his results presentation.