The world pandemic of coronavirus led to a financial crisis throughout the world. Many economies faced recession owing to the virus. Even the world’s largest economy of the United States faced a sharp recession. But one of the largest banks of the United States reported the highest revenues. It was better than the expected revenue and it even threw off the history of revenues. Read the following article to get more information-
Jamie Dimon Claims About JP Morgan Chase Revenue
The Billionaire Chairman and CEO of JP Morgan, Jamie Dimon after the release of the fourth-quarter results are quite confident that his firm would combat an uncertain economic environment which could be worse than what is speculated by current economists. All these claims are made by him highly on the credit reserves of the bank which are over $30 billion. He also says although the year 2020 was tough the record revenue earned has boosted their morale high.
The Quantitative Data-
Moving onto the quantitative figures which have proved JP Morgan has created record revenues even during the pandemic.
- In the fourth quarter of 2020, JP Morgan announced $29.2 billion of revenue which was analyzed to be $28.3 billion pertaining to last year which was also $28.3 Billion.
- JP Morgan’s Net income in the fourth quarter was $12.1 billion. Estimating it with share value then it was $3.79 per share while the predicted estimated was $2.62 per share.
- The release of cash reserves of about $2.9 billion during a time when there was positivity in the market for vaccines actually helped the firm gain profits.
- Before the pandemic also most banks were not able to gain profits of $5.5 billion but JP Morgan corporate and investment bank had generated such a profit in the second quarter only during the pandemic.
- JP Morgan kept a pre-planned sum of money to cover loans that would go in vain due to the shutdown of major economic activities in the entire world. This step was taken according to the new provision. which helped the bank a lot.As known to everyone JP Morgan is one of the biggest banks in the United States in the Retail Banking Sector by assets. It has an array of branches not only in the United States but also in foreign lands. Throughout the past decade, it has built up lenders’ dominance which was definitely helpful in this time of the pandemic. Leading to gaining revenue from credit card default, mortgage defaults, and auto lines.
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