JPMorgan Boosts Credit Reserves As Profits Tank, Jamie Dimon Warns About ‘Significant Challenges Ahead’

JPMorgan Boosts Credit Reserves As Profits Tank, Jamie Dimon Warns About ‘Significant Challenges Ahead’

Share to Linkedin Shares of JPMorgan Chase, the biggest U. S. bank by assets, fell on Wednesday after the firm reported earnings which showed profits declined sharply from last year due to market upheaval caused by Russia's invasion of Ukraine, surging inflation and lasting supply chain problems. CEO Jamie Dimon warned of "downside risks" due to high inflation and the war in Ukraine. While JPMorgan's quarterly revenue came in slightly higher than expected at $31. 6 billion, the bank's first-quarter profit tanked 42% from a year earlier, to $8. 28 billion, as dealmaking and trading activity slowed amid ongoing uncertainty in markets. Another warning sign for investors was that JPMorgan is building up its credit reserves—increasing provisions for loan losses to $1. 5 billion—as it unwinds its exposure to Russia and faces "downside risks due to high inflation and the war in Ukraine." The bank said profits were impacted by a $902 million charge tied to building credit reserves for anticipated loan losses, as well as $524 million in losses from market disruptions caused by Russia's invasion of Ukraine. With JPMorgan kicking off earnings season, Wall Street investors will likely be worried about similar trends in upcoming bank results: "There