REUTERS: JPMorgan Chase & Co beat Wall Street estimates for profit in the second quarter due to a surge in trading revenue, while it set aside a record US$10.5 billion to brace for rising defaults as the United States slides into one of the worst recessions in decades.
The bank's shares rose 2.2per cent as both profit and revenue beat Refinitiv's consensus estimates, but the reserve build of US$8.9 billion painted a grim picture for future quarters. "Compared to the first quarter, our reserve build now assumes a more protracted downturn ... as we prepare and reserve for something worse than our base case," Chief Financial Officer Jennifer Piepszak said in a media call.
A new accounting rule requires banks to take provisions now if a borrower may default at any point during the agreement, even if that is months or years away.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JPMorgan beats estimates on trading, but loan losses loomJPMorgan Chase & Co reported a more than 50per cent drop in second-quarter profit on Tuesday, as the coronavirus pandemic weighed on its lending ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
JPMorgan profit sinks as loan loss provisions surgeJPMorgan Chase & Co reported a more than 50per cent drop in second-quarter profit on Tuesday, as the coronavirus pandemic weighed on its lending ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
PepsiCo beats revenue estimates on snacking boostPepsiCo beat analysts' estimates for quarterly revenue on Monday, as its snacks business benefited from a surge in at-home consumption of salty ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
PepsiCo beats revenue estimates on snacking boostPepsiCo Inc beat analysts' estimates for quarterly revenue on Monday, as its snacks business benefited from a surge in at-home consumption of ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Wells Fargo swings to loss on higher provisions to cover soured loansWells Fargo & Co swung to a loss in the second quarter after setting aside US$9.5 billion to cover potential loan losses due to the coronavirus ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Wells Fargo swings to US$2.4 billion loss as pandemic bitesWells Fargo & Co swung to a loss in the second quarter after setting aside US$9.5 billion to cover potential loan losses due to the coronavirus ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »