JPMorgan sees 42% decline in profit amid sanctions on Russia

By Ovunc Kutlu

ANKARA (AA) - US-based multinational investment bank and financial services holding company JPMorgan Chase saw a 42% decline in profit during the first quarter of the year with sanctions imposed on Russia amid its war on Ukraine.

The net income fell to $8.3 billion in the January-March period of this year, from $14.3 billion the same period of 2021, according to the financial results statement released on Wednesday.

The net revenue decreased to $30.7 billion, from $32.3 billion, during the same period, almost a 5% decline.

JPMorgan said the losses reflect "both increases in commodities exposures and markdowns of derivatives receivables from Russia-associated counterparties."

"The provision for credit losses was $1.5 billion, reflecting a net reserve build of $902 million driven by increasing the probability of downside risks due to high inflation and the war in Ukraine, as well as accounting for Russia-associated exposure," the statement said.

JPMorgan's stock price was down 2.6% to $128.10 per share at 1150EDT (1550GMT) on the New York Stock Exchange.