JPMorgan Chase & Co (NYSE:JPM) stock rose 3.09% (As on July 15, 10:57:37 AM UTC-4, Source: Google Finance) after the company reported a worse-than-expected 28% fall in quarterly profit and suspended share buybacks in the face of growing risks of a recession. The bank recorded $1.1 billion in provision for credit losses, including a $428 million boost in loss provisions. Last year, the bank had released $3 billion from its reserves. It had posted a profit of $8.6 billion. Net income was $8.6 billion, down 28%, predominantly driven by a net credit reserve build of $428 million compared to a net release of $3.0 billion in the prior year. NII excluding Markets was $13.7 billion, up 26%, driven by higher rates.

JPM in the second quarter of FY 22 has reported the adjusted earnings per share of $2.76, missing the analysts’ estimates for the adjusted earnings per share of $2.88, according to Refinitiv. The company had reported the adjusted revenue growth of 1 percent to $30.7 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue of $31.6 billion.

Moreover, Consumer & Business Banking net revenue was $6.6 billion, up 9%, predominantly driven by growth in deposits. Home Lending net revenue was $1.0 billion, down 26%, predominantly driven by lower production revenue from lower margins and volume, and lower net interest income from tighter loan spreads, partially offset by higher net mortgage servicing revenue. Card & Auto net revenue was $5.1 billion, down 6%, predominantly driven by strong new Card account originations leading to higher acquisition costs, and lower auto operating lease income, largely offset by higher Card net interest income on higher revolving balances. Banking revenue was $3.2 billion, down 37%. Investment Banking revenue was $1.4 billion, down 61%, predominantly driven by lower Investment Banking fees, down 54%, driven by lower fees across all products. The decrease also reflects $257 million of markdowns on held-for-sale positions in the bridge book. Payments revenue was $1.5 billion, up 1% and included markdowns on equity investments. Markets & Securities Services revenue was $8.7 billion, up 8%. Markets revenue was $7.8 billion, up 15%. Fixed Income Markets revenue was $4.7 billion, up 15%, driven by strong results in macro businesses, partially offset by lower revenue in Credit and Securitized Products. Equity Markets revenue was $3.1 billion, up 15%, driven by a strong performance in derivatives.