(AOF) – JPMorgan lost 4.5% to 106.8 dollars and Morgan Stanley lost 2.4% to 73.12 dollars. The two US banks opened the earnings season with disappointing performances. JPMorgan missed the consensus and temporarily suspended share buybacks to strengthen its balance sheet in anticipation of an expected economic slowdown. In the second quarter ended at the end of June, the American bank achieved a net profit down 27.6% to 8.65 billion dollars, or 2.76 dollars per share. FactSet was targeting $2.89 per share.
Net banking income increased by 0.8% to 30.72 billion. Wall Street was aiming for 31.81 billion.
The bank booked $1.1 billion in loan loss provisions, while last year $3 billion was released from provisions.
Same trend at Morgan Stanley. In the second quarter ended at the end of June, the American bank achieved a net profit down 28.8% to 2.5 billion dollars, or 1.39 dollars per share. Adjusted, it stands at $1.44 per share against a consensus of $1.56. Net banking income fell by 11% to 13.13 billion.
Both groups were penalized by the drop in transactions in a context of high market volatility.
