JPMorgan Reports $524 Million Hit Tied to Russia

Hit by significant geopolitical and economic challenges like the market dislocations caused by sanctions against Russia, JPMorgan Chase reported a $524 million drop in Q1.

This are the key figures according to bank’s quarterly results:

-Revenue (adjusted): $31.59 billion vs. $30.86 billion estimate

-Adjusted earnings: $2.76 a share vs. $2.69 estimate

The quarterly results reflected a volatile start to the year on Wall Street, as the Russia-Ukraine war and uncertainty on markets. A lower than expected net income of $8.3 billion, or $2.76 per share was down 42% from the same period in 2021, when the bank posted a profit of $14.3 billion, or $4.50 per share.

“We remain optimistic on the economy, at least for the short term but see significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraine,” JP Morgan CEO Jamie Dimon said in a statement.

The biggest U.S. bank by assets revenue dropped a more modest 5% to $31.59 billion, exceeding estimations for the quarter by analysts.

JPMorgan warned last month that turbulence tied to the Ukraine war and sanctions on Russia made further forecasts impossible.

Shares of JPMorgan have dropped 16.9% this year before Q1 report. The bank is the first among a lineup of big banks to unveil first quarter results later this week.