Quarterly profit of JPMorgan Chase & Co (NYSE: JPM), the largest US bank by volume of assets, decreased by 6.7 % amid growth of the expenses on covering the possible losses of loans, offered to entities experiencing problems with shale companies.
Net profit fell to $ 5.52 billion in the first quarter, ended March 31, from $ 5.91 billion a year earlier. The earnings per share decreased to $ 1.35 from $ 1.45 in the same period last year.
Analysts on average expected earnings of $ 1.26 per share, according to a survey by Thomson Reuters I/B/E/S.
JPMorgan was the first US bank to present their financial statements after the Fed's decision in December to increase the key interest rate by a quarter percentage point the first time in almost a decade.
On Thursday, the Bank of America Corp (NYSE: BAC) and Wells Fargo & Co (NYSE: WFC) - the second and third largest US banks, must come with their own reports.
Earlier, JPMorgan Chase & Co (NYSE: JPM) cut 30 jobs, or 5 % of the state, in the Asian wealth management division, turning its attention to more wealthy customers, said a source with direct knowledge of the situation.
Reduction will affect the bank's offices in Singapore and Hong Kong, said the source, who spoke on condition of anonymity due to the prohibition to publicly discuss the issue.
The US bank has decided to lay a part of the employees to refocus on the wealthiest Asian clients, who have assets in the amount of $ 10 million, whereas previously the threshold was $ 5 million, the source said.
"In J.P. Morgan, we continually review the scope, to ensure that our clients have advisers who can best meet their needs," - said in a statement JPMorgan spokesperson.
The statement also said that the bank will hire new employees in the region, to ensure the unit growth.
Many Western banks closed the divisions in Asia due to rising costs, regulatory risks and competition.