the war in Ukraine and worsening inflation Raising fears of a recession wasted no time in JP Morgan Chase’s first-quarter earnings call with CEO Jamie Dimon to discuss the company’s substantial financial adviser hiring gains.
The company’s private bank and JP Morgan Wealth Management have added more than 650 combined registered representatives on a net basis in the past year – a notable gain that marks at least the third trimester in a row who saw more than 500 new advisors join the company. Understandably, however, analysts who spoke with Dimon on a call after the megabank reported its earnings April 13 focused on the potential threat of a recession.
Dimon reminded them that he “can’t predict the future any more than anyone else” and that “everyone is wrong all the time”. according to to a transcript by investing on The Motley Fool website. Some aspects of the economy’s ‘very strong underlying growth’ are ‘unstoppable’, Dimon told them, citing strength in business and credit and the $2 trillion he said consumers have in their savings and checking accounts. On the other hand, there are “two other very big compensating factors” with inflation and Russia’s invasion of Ukraine, he said.
“Wars have unpredictable results. You have already seen it in the oil markets. Oil markets are precarious,” Dimon said. “It’s another huge cloud on the horizon, and we’re prepared for it. We understand that. I can’t tell you the result. I hope all these things fade away and go away, we have a soft landing and the war is resolved. OKAY? I wouldn’t bet on any of that. As risk managers, we will overcome all of this. We will serve our customers and we will gain market share. We’re going to get there by earning huge returns on capital as we’ve done in the past.
The bank surprised nervous Wall Street by setting aside $900 million to prepare for the worst, on top of the more than $5 billion in reserves it freed up last year for potential loan losses. during the pandemic, The Wall Street Journal reported. Its share price fell after the earnings, adding to its declines during recent equity volatility.
However, the most important metrics for financial advisors and other wealth management professionals looked much more optimistic. For coverage of the company’s fourth quarter results, Click here. To see key findings from JP Morgan’s first quarter results, scroll through our slideshow.
Note: The company does not detail specific wealth management measures in its organization, which includes global private banking in its Asset & Wealth Management division and JP Morgan Wealth Management in the Consumer & Community Banking segment.