Published - Apr 13, 2022 @ 3:51 PM (EET)

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On Wednesday, JPMorgan Chase & Co. (NYSE:JPM) reported a lower-than-expected quarterly profit, plunging 42% year-to-date amid rising inflation, a fresh wave of Covid-19, and Russia's invasion of Ukraine.

According to Refinitiv data, the total value of pending and completed deals in its first quarter fell to its lowest since the second quarter of 2020.

JPMorgan, a component of the Dow Jones Industrial Average, said its first-quarter profit fell to $8.28 billion from $14.3 billion in the year-ago quarter, and revenue dropped from $32.27 billion to $30.7 billion.

Short of expectations at $2.63, earnings per share fell about 3%.

Total expenses rose 2% to $19.19 billion in the quarter, while Chief Executive Jame Dimon has stressed the bank needs to invest in its future and that the post-pandemic era is the right time to do it.

"We remain optimistic on the economy, at least for the short term - consumer and business balance sheets as well as consumer spending remain at healthy levels - but see significant geopolitical and economic challenges ahead due to high inflation, supply chain issues, and the war in Ukraine." - James Dimon.

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A year ago, JPMorgan welcomed a $4.2 billion boost from freeing cash flow it had earlier set aside for potential defaults.  For the quarter, the bank took $1.5 billion in total credit charges while revenue in consumer banking fell 2% and profit dropped 57%.

Net interest income from the industry leader's core banking businesses and excluding the impact of markets increased 9% from a year earlier on additional loans, securities, and higher rates.

Debit and credit card sales volume climbed 21% in the quarter, compared to 26% in the final quarter of 2021.

The bank further softened any disappointment by announcing board approval for a share buyback plan of $30 billion.  The company bought back shares worth $1.7 billion in the first quarter.

JPMorgan's shares fell 1.5% in premarket trading, adding to a 17% decline this year.