New York: JPMorgan Chase set aside another $8.9 billion for bad loans in the second quarter following the upheaval of the coronavirus as it reported on Tuesday a steep drop in profits.Net income fell 51 percent to $4.7 billion, translating into earnings-per-share that topped analyst forecasts.
Revenues jumped 15 percent to $33.8 billion, its highest ever for a quarter. JPMorgan pointed to strength in its trading and investment banking divisions that it said offset weakness in consumer divisions.
The reserves taken in the second quarter were greater than in the first quarter, reflecting the choppy nature of the economic recovery following coronavirus closures earlier in the year that sharply slowed activity.
The biggest reserves additions were in consumer banking, mostly in credit cards. The results come on the heels of actions by California, Texas and other states to halt or roll back the reopening of their economies due to a resurgence of COVID-19 in many states.