The bank said it has credit reserves of more than $ 30 billion to help be a cushion if conditions worsen.
Dimon noted in the bank’s earnings statement that the build-up of credit reserves’ still reflects significant short-term economic uncertainty and will enable us to withstand an economic environment that is far worse than the current base forecasts of most economists. ‘
However, Dimon did mention ‘positive vaccine and stimulus developments’ as a hopeful sign for the future.
JPMorgan Chase reported solid gains in its investment banking unit and a healthy increase in trading income. The recovery of the stock market was good for the bank, as well as a boom in the initial listing activity and the making of transactions.
However, the bank’s consumer business is still suffering a bit. Revenue in the unit decreased by 8% in the fourth quarter as the banks experienced a decrease in net revenue for its core consumer banking and credit card lending divisions.
JPMorgan Chase chief financial officer Jennifer Piepszak said during a conference with reporters that the bank does not expect lending demand to pick up as much this year, despite the continuation of low interest rates.
The one bright spot in the consumer industry? Bandages. Driven by a booming housing market thanks to low rates and rising prices as more people move to the suburbs, JPMorgan Chase reported a 16% increase in home loan income from a year ago.
During the call with reporters, Dimon said the housing market should remain robust as there is still a shortage of supply which is raising house prices.