Nasdaq Composite, Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) futures are trading higher as earnings reporting season has kicked off in the US stock market. The volatility in share prices may still not be ruled out.

JPMorgan Chase has reported first-quarter 2022 net income of $8.3 billion ($2.63 per share). JPMorgan Chase & Co. (JPM) listed on NYSE was at around $127.51, lower by nearly 3 per cent in the pre-market trading hours.

JPMorgan earnings result shows that the provision for credit losses was $1.5 billion, reflecting a net reserve build of $902 million driven by increasing the probability of downside risks due to high inflation and the war in Ukraine, as well as accounting for Russia-associated exposure.

Net income of JPMorgan Chase was $8.3 billion, down 42%, predominantly driven by a net credit reserve build of $902 million compared to a net credit reserve release of $5.2 billion in the prior year. Net revenue for the company was $31.6 billion, down 5%.

Financial Highlights

Net interest income (NII) was $14.0 billion, up 7%.

NII excluding Markets was $11.8 billion, up 9%, predominantly driven by balance sheet growth and higher rates, partially offset by lower NII associated with PPP loans.

Noninterest revenue was $17.6 billion, down 12%, driven by lower Investment Banking fees, losses on legacy equity investments compared to gains in the prior year and $394 million of net investment securities losses in Corporate, and lower net production revenue in Home Lending.

Reported revenue of $30.7 billion; managed revenue of $31.6 billion

No. 1 ranking for Global Investment Banking fees with 8.0% wallet share in 1Q22

Total Markets revenue of $8.8 billion, down 3%, with Fixed Income Markets down 1% and Equity Markets down 7%

Gross Investment Banking revenue of $729 million, down 35%

Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase generated a healthy $30 billion of revenue, $8.3 billion of earnings and an ROTCE of 16% in the first quarter after adding $902 million in credit reserves largely due to higher probabilities of downside risks. Lending strength continued with average firmwide loans up 5% while credit losses are still at historically low levels.

We remain optimistic on the economy, at least for the short term – consumer and business balance sheets as well as consumer spending remain at healthy levels – but see significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraine.”