JPMorgan Profit Slid After a Pandemic Boom

JPMorgan Chase & Co profit in the first quarter dropped 42%. The country's largest bank generated $8.28 billion ($2.63 per share), compared to $14.3 billion a year ago. According to FactSet, analysts expected $2.72 per share.

Total expenses rose 2% to $19.19 billion in the first quarter, roughly in line with expectations. Chief Executive Jamie Dimon has said that the bank needs to invest in its future and the post-pandemic era is the right time to do it. 

The bank took $1.5 billion in total credit charges for the quarter and got a $4.2 billion boost from freeing up the money it had earlier kept for potential defaults. It also said that the bank budgeted for higher credit losses this quarter because of economic challenges including inflation and the Russia-Ukraine war and to account for its exposure in Russia. 

The net interest margin of the bank, which measures what it collects on loans minus what it pays for deposits, rose to 1.67% from 1.63% at the end of December. The shares of the bank slid 1% to $130.20 in premarket trading on Wednesday.