Overview

• JPMorgan Chase and Morgan Stanley reported record quarterly profits, driven by exceptional performance in equity trading, with revenues of $3.8 billion and $4.1 billion respectively.
• Both banks significantly raised their risk provisions, with JPMorgan setting aside $973 million and Morgan Stanley increasing reserves for potential credit losses, reflecting concerns over economic instability.
• Jamie Dimon, CEO of JPMorgan, highlighted risks from geopolitical tensions, tariffs, persistent inflation, and market volatility, predicting a likely recession in the U.S.
• Despite strong trading results, advisory services such as mergers and acquisitions and IPOs have seen declines due to cautious investor sentiment and market fluctuations.
• The record earnings come as the banks navigate a challenging economic landscape shaped by trade disputes and evolving policy decisions under the current U.S. administration.