A Journal opinion article Essay Example | Topics and Well Written Essays - 750 words - 11

A Journal opinion article - Essay Example As compared to the same period last year, JP Morgan registered a reduction in bond trading revenue by 21%. Additionally, the bank revenue obtained from the mortgage reduced to 84%. Major aspect that caused the poor performance by the bank was due to uncertainties that surrounded the US economy as far as lending to consumers and trading volumes are concerned. Being one of the Wall Street banks to post the reduced earnings, JP Morgan indicates how the financial sector has been faced with difficulties in the first quarter of 2014. Additionally, majority of the businesses owned by the bank including the commercial lending and the credit cards indicated low profits. This resulted to reduced total revenue for the bank in the first quarter an aspect that may result in reduction of annual revenue if the trend of the low performance in the financial sector continues in the remaining quarters. According to the bank, the net income fell to $5.27 billion which is equivalent to $1.28 per share fo rm the $6.53bn, or $1.59 per share which was experienced in the same period in 2013. According to the analysts, the bank earning per share was expected to stand at $1.40 per share. However, this was not achieved due to the reduction in net revenue which experienced 8.5% fall to stand at $22.99bn while the bank expected total revenue to stand at $24.53billion. Similarly, in the premarket trading, JP shares reduced by 3.3% to sell at $55.50 deviating from $61 highest prices that the bank has maintained for the last 13 years. This is a major indicator of poor performance of the bank an aspect that may result to low level of trust from the customers as well as investors. Despite the low performance by the JP Morgan, Jamie Dimon, the chief executive officer indicates that the largest bank in US is creating confidence in the country’s economy. As the result of