10-Q, Member Exclusive

JPM’s solid Q2 performance is followed by modifications to its card transaction policy

  • JPM's second-quarter earnings report from the Friday before last was followed by new changes to its card payment policy last week.
  • This strategy may be driven by the bank’s expectation of upcoming credit losses, aiming to reduce defaults by guiding customers toward its own financial products.
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    Can the new changes to card transactions affect Chase card loyalty?

    The completion of the first half of the year marks the release of second-quarter earnings reports from major banks. 

    JPMorgan exceeded revenue projections thanks to investment banking fees and equities trading results. The bank earned $2.3 billion from investment banking fees alone, pushing its revenue up by 20% compared to the previous year, totaling $50.99 billion. Strong investment banking revenue was a key area driving the quarterly earnings of other large banks, including Citi, Bank of America, and Morgan Stanley, which all saw a parallel trend.

    Although JPM reported strong Q2 earnings, the downside of inflation was also evident. The bank set aside $3.05 billion for credit losses in the quarter, surpassing its estimated $2.78 billion. The bank foresees increased defaults among borrowers, particularly due to its credit card business.

    Alterations in card transaction policy: The bank’s second-quarter earnings report from the Friday before last was followed by new changes to its card payment policy last week. 


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