Jamie Dimon Photo source Company’s Website
Jamie Dimon, CEO of JPMorgan Chase, said that he is expecting a “mild” recession in 2023. The comment came after JPMorgan Friday posted much higher than expected income for Q4 2022.
The JPMorgan Chase head attributed his bad news to the undoing war in Ukraine. The current financial woes, and high inflation, are generally due to the fallout from Russia’s invasion of Ukraine last year which led to numerous sanctions and embargoes being imposed on Russia and its wealthiest oligarchs. The war has also caused disruption in global supply chains.
Jamie Dimon said on Friday, “We still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening.”
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JPMorgan Chase reported earnings of $3.57 per share which exceeded the $3.07 estimate after excluding one-time items. It also reported revenue of $35.57 billion, higher than the estimated $34.3 billion. Its profits also went up by 6%, at a time when companies everywhere were forced to contract and lay off employees due to the continuing worldwide financial crisis.
JPMorgan Chase also posted a $2.3 billion provision for credit losses in Q4 2022, a 49% increase from the Q3 that exceeded the $1.96 billion StreetAccount estimate, as it set aside money for expected defaults. The company’s shares rose 1.1%, reported CNBC.
Jamie Dimon also spoke about his firm’s acquisition of the college financial-aid website Frank. JPMorgan bought Frank for $175 million in September 2021. At the time the financial firm said the site was “the fastest-growing college financial planning platform” with more than five million student users across 6,000 schools. But now JPMorgan Chase is suing saying that most of the site’s users were fake.
“Obviously, this thing one way or another was a huge mistake,” the JPMorgan Chase CEO said “When you’re getting up to bat 300 times a year you are going to have errors, and we don’t want our company to be terrified of errors so we don’t do anything.”
Jamie Dimon is Chairman of the Board and Chief Executive Officer of JPMorgan Chase & Co., a global financial services firm with assets of $3.2 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers, small businesses, commercial banking, financial transaction processing and asset management.
Dimon became CEO on January 1, 2006, and one year later also became Chairman of the Board. He was named President and Chief Operating Officer upon the company’s merger with Bank One Corporation on July 1, 2004. Dimon joined Bank One as Chairman and CEO in 2000.
