JP Morgan earnings for Q2 are out
- Revenue $33 billion vs $30.3 billion estimate
- Provision for credit losses $10.47 billion vs $9.15 billion estimate
- FICC sales and trading revenue $7.34 billion vs $5.74 billion estimate
- Equities sales and trading revenue $2.38 billion vs $2.09 billion estimate
I think the large loan loss provision is no surprise considering the economic circumstances, but the general uncertainty of the coronavirus situation will just keep banks/financials pressured in general. Essentially, JP Morgan lives to fight another quarter.
But the low rates will continue to weigh on bank profitability and credit defaults will continue to pose a threat in the coming months amid the economic situation.
As for impact on the risk mood today, this may not mean much but the continued caution is something to take note of as banks may not have quite reached their nadir yet.
