The nation’s largest lender, JPMorgan Chase (NYSE: JPM) shares jumps over 6% in pre trading session on Friday after it showed resilience in the face of headwinds that taxed its whole sector in March by reporting first quarter net income and revenue increases while seeing a decline in deposits.
The JPMorgan reports increased earnings by 52% from the first quarter of 2022 to $12.6 billion and revenue of $38.3 billion increased by 25% over the same time last year.
In contrast, JPMorgan Chase & Co. has dropped hundreds of base metals clients and reduced bankers’ bonuses as the company continues to face intense internal scrutiny in the aftermath of the nickel debacle from a year ago. After playing a significant role as the largest counterparty of the Chinese business at the core of the nickel short squeeze on the London Metal Exchange, JPMorgan, the largest participant on Wall Street in the metals market, has been evaluating its exposure to commodities for more than a year. It was also a lender for the leading copper dealer in China, whose operations came to an end last year due to a liquidity issue.
Numerous base metals clients in Asia have been dropped by the bank, with Chinese privately held enterprises suffering the most significant reductions, according to the sources. They said that it is still only working with a small number of significant, long-standing clients in the area. According to a Bloomberg article from the previous year, JPMorgan has halted new inventory finance in China.
A highly anticipated earnings season for the top banks in the country begins with JPMorgan. Also releasing earnings today are Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), and PNC (NYSE: PNC). In the upcoming weeks, banks of all sizes will be pressed into action to convince investors that they are better equipped than their competitors to withstand any potential unrest.
Following the announcement of the earnings on Friday, JPMorgan shares increased 6.4% in the pre-market.
The commotion caused by the collapses of Silicon Valley Bank and Signature Bank didn’t completely spare JPMorgan. Although they were up 1.5% from the fourth quarter of 2022, their deposits were down 7% from a year earlier.
Large and small lenders alike had been losing depositors to money market funds before the unrest in March because they were willing to give greater payouts as the Federal Reserve raised interest rates. According to latest figures from the Fed, the outflow of deposits from all of the country’s banks last month through March 29 was close to $500 billion.
