#JPMorgan Chase beats estimates, but second quarter profits plunge

JPMorgan Chase’s second quarter earnings beat analyst expectations, but its profits plunged 51 percent as the coronavirus pandemic weighed on big banks.

The mega-bank on Tuesday reported net income of nearly $4.7 billion from April through June, down from about $9.6 billion in the same period last year. Its earnings per share of $1.38 were also down from $2.82 a year ago but beat analysts’ average estimate of $1.04, according to Refinitiv data, though it’s uncertain whether the numbers are comparable.

The earnings beat gave JPMorgan shares a boost in premarket trading. They were up 2.6 percent at $100.29 as of 7:22 a.m.

JPMorgan also set aside another $8.9 billion last quarter to prepare for credit losses as the pandemic weighed on the global economy. The bank said it now has more than $34 billion in its credit reserves after adding nearly $6.8 billion in the first quarter.

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

With Post wires