JPMorgan Saw 42% YoY Decline in Net Income in Q1 2022

JPMorgan Chase & Co., one of the oldest financial institutions in the US, has released its financial results for Q1 2022, disclosing that its net income across the firm declined by 42% YoY to $8.3 billion, 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.

Regarding the Corporate & Investment Bank department, the net income was $4.4 billion, down 26%, with net revenue of $13.5 billion, down 7%. Specifically, Banking revenue was $4.2 billion, down 6%. Investment Banking revenue was $2.1 billion, down 28%.

Markets & Securities Services revenue was $9.3 billion, down 8%. Markets revenue was $8.8 billion, down 3%. Fixed Income Markets revenue was $5.7 billion, down 1%. Equity Markets revenue was $3.1 billion, down 7%, driven by lower revenue in derivatives and Cash Equities compared to a strong prior year. Securities Services revenue was $1.1 billion, up 2%.

In terms of Commercial Banking division, the net income reached $850 million, down 28%, largely driven by credit reserve builds compared to reserve releases in the prior year. Net revenue was $2.4 billion, flat compared to the prior year.

As for Asset & Wealth Management, the net income was $1.0 billion, down 20%, with net revenue at $4.3 billion, up 6%.