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

    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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