Summary
JPMorgan Chase & Co. reported a net income of $8.3 billion, or $2.63 per diluted share, for the first quarter of 2022. Total net revenue decreased by 5% year-over-year to $30.7 billion, primarily driven by a 13% decline in noninterest revenue, which was impacted by lower investment banking fees and losses in Credit Adjustments & Other within the Corporate & Investment Bank (CIB). Conversely, net interest income rose 8% to $13.9 billion, benefiting from balance sheet growth and higher interest rates. The firm saw a significant increase in the provision for credit losses to $1.5 billion, a reversal from the prior year's net benefit of $4.2 billion. This was largely due to a $902 million addition to the allowance for credit losses, reflecting an increased weighting of adverse economic scenarios given inflation, monetary policy shifts, and geopolitical risks, including the war in Ukraine. Despite lower revenues, the firm maintained strong capital ratios, with a CET1 capital ratio of 11.9%. The Consumer & Community Banking segment demonstrated resilience with a 23% return on equity, driven by strong deposit growth and card sales volume.
Financial Highlights
32 data points| Interest Expense | $1.62B |
| Net Income | $8.28B |
| EPS (Basic) | $2.64 |
| EPS (Diluted) | $2.63 |
| Shares Outstanding (Basic) | 2.98B |
| Shares Outstanding (Diluted) | 2.98B |
Key Highlights
- 1Net income declined 42% year-over-year to $8.3 billion, or $2.63 per diluted share.
- 2Total net revenue decreased 5% to $30.7 billion, with noninterest revenue down 13% and net interest income up 8%.
- 3Provision for credit losses increased significantly to $1.5 billion, compared to a net benefit of $4.2 billion in the prior year, reflecting an increased allowance for credit losses.
- 4Consumer & Community Banking (CCB) reported a 57% decrease in net income to $2.9 billion, impacted by higher credit loss provisions.
- 5Corporate & Investment Bank (CIB) saw a 26% decrease in net income to $4.4 billion, primarily due to lower investment banking fees and principal transactions revenue.
- 6Common equity Tier 1 (CET1) capital ratio remained strong at 11.9%, though down from 13.1% in the prior quarter.
- 7Tangible book value per share grew 5% year-over-year to $69.58.