JPMorgan Chase 2Q21 Earnings Analysis


JPMorgan Chase Stock Analysis

Business Description:


JPMorgan Chase Stock Analysis

  • Massive increase in deposits YoY mostly from Increase in Federal Reserve System balance sheet

  • Massive increase in net income from release of reserves for credit losses of $3.0 billion in 2Q21


JPMorgan Chase Stock Analysis

Catalysts:


  • Economic recovery in the US and around the World

  • Rising interest rates

  • More release of credit losses → do not contribute to actual growth, only paper growth

  • Increased dividends and share buybacks


Risks:

  • Zero interest rates, QE and banking regulations (Dodd-Frank Act of 2011) makes makes it harder for banks to do business


Financial Analysis:

  • Revenues of $31.4 Billion in 2Q21 down $1.7 Billion QoQ

  • Revenues of $121.9 Billion in TTM vs $119.5 Billion in FY20