Jimmy Dimon, CEO of JPMorgan Chase, remains concerned about the US economic recovery

Jimmy Dimon, CEO of JPMorgan Chase, remains concerned about the US economic recovery
But JPMorgan Chase CEO Jimmy Dimon still looks a bit nervous about Economic Outlook in the near term, Referring to the lingering effects of the Covid-19 pandemic.

The bank said it had more than $ 30 billion in credit reserves to help serve as a cushion should conditions deteriorate.

Dimon noted in the bank’s earnings statement that the build-up of credit reserves “continues to reflect significant economic uncertainty in the near term and will allow us to withstand an economic environment far worse than the current fundamental expectations of most economists.”

Nonetheless, Dimon pointed to “positive vaccines and motivational developments” as a sign of hope for the future.

During a conference call with reporters, he added that we could have a “very healthy economy” by the summer – especially if unemployed Americans and small businesses “who are in desperate need of help” get help. More stimulus payments From the incoming Joe Biden administration and the Democratic-led Congress.
stocks C. B. Morgan Chase (JPM), Which had already risen 11% so far in 2021 ahead of the earnings report, eased slightly on Friday but is still trading at all-time highs.
JPMorgan Chase also performed better than its banking competitors Citigroup (C) And the Wells Fargo (WFC) Which benefited both of them Mixed results Friday morning.

JPMorgan Chase reported strong gains in its investment banking unit and a healthy jump in trading returns. The rebound in the stock market has been beneficial to the bank, as has the return of initial public offering and dealmaking activity.

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The bank’s consumer business continues to suffer a bit. Revenue declined by 8% per unit in the fourth quarter as banks recorded declines in net income for their two core divisions of retail banking and credit card lending.

The bank does not expect demand for loans to rise much this year despite continuing low interest rates, said Jennifer Pepszak, JPMorgan Chase CFO, during a conference call with reporters.

The only bright spot in consumer business? Mortgages. Supported by a booming housing market thanks to lower rates and higher prices as more people move to the suburbs, JPMorgan Chase reported a 16% jump in home lending revenue from a year ago.

Dimon said during the call with reporters that the housing market should remain strong, as there is still a shortage of supply which boosts housing prices.

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