NEW YORK, July 14 — JPMorgan Chase & Co today set aside about US$10.5 billion (RM44.8 billion) in reserves to cover a wave of potential defaults in the aftermath of the Covid-19 pandemic as the largest US bank reported a smaller-than-expected 51 per cent drop in second-quarter profit.
The bank’s net income fell to US$4.69 billion, or US$1.38 per share, in the quarter ended June 30, but topped analysts’ lowered estimates of US$1.04 per share, sending its shares up 4 per cent in premarket trading.
The scale of expected loan losses at the bank is a major barometer of the health of the US economy, as the coronavirus pandemic drives up unemployment and puts pressure on businesses.
“Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy,” Chief Executive Officer Jamie Dimon said.
Dimon also said the bank will continue to pay dividend unless “the economic situation deteriorates materially and significantly”.
Wells Fargo & Co and Citigroup Inc are scheduled to report results later today, followed by Goldman Sachs Group Inc tomorrow and Morgan Stanley and Bank of America Corp on Thursday. — Reuters
