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JPMorgan Q1 Profit Plunge 69%, Results Miss Estimates - Quick Facts

JPMorgan Chase & Co. (JPM) reported Tuesday a profit for the first quarter that plunged 69 percent from last year, hurt by sharply higher provision for credit losses predominantly driven by reserve builds across the firm. Both earnings per share and revenue for the quarter missed analysts' expectations.

Net income for the first quarter plunged 69 percent to $2.87 billion from last year's $6.31 billion, with earnings per share decreasing to $0.78 from $1.87 in the prior year.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $1.84 per share for the quarter. Analysts' estimates typically exclude special items.

The provision for credit losses was $8.29 billion, including reserve builds of $6.8 billion, up from $1.50 billion in the prior year. This reflects deterioration in the macro-economic environment as a result of the impact of COVID-19 and continued pressure on oil prices.

Total net revenue declined to $28.3 billion from $29.1 billion in the prior-year quarter. On a Managed Basis, net revenue was $29.07 billion, down 3 percent from $29.85 billion in the previous year. Wall Street expected revenues of $29.67 billion for the quarter.

Net interest income was $14.5 billion, flat with last year, with the impact of lower rates offset by balance sheet growth and mix as well as higher net interest income in CIB Markets. Non-interest revenue was $14.5 billion, down 5 percent from last year.

Noninterest expense was $16.85 billion, up 3 percent, driven by higher volume- and revenue-related expense and investments, as well as higher legal expense, partially offset by lower structural expense.

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