The bank said it has credit reserves of more than $ 30 billion to help act as a cushion if conditions worsen.
Dimon noted in the bank’s earnings report that the increase in credit reserves “continues to reflect significant short-term economic uncertainty and will allow us to withstand an economic environment far worse than most basic economists’ current predictions.”
Dimon, however, cited “positive vaccines and stimulus development” as a sign of hope for the future.
JPMorgan Chase reported solid gains in its investment banking unit and a healthy jump in trading revenues. The recovery of the stock market has been good for the bank, as well as a resurgence in the initial public offering activity and in doing business.
The bank’s consumer business is still suffering a little. Revenue fell 8% in the unit in the fourth quarter, as banks recorded declines in net revenue from their main consumer bank and credit card lending divisions.
JPMorgan Chase’s chief financial officer, Jennifer Piepszak, said during a conference call with reporters that the bank does not expect demand for loans to rise so much this year, despite continuing low interest rates.
The only bright spot in the consumer business? Mortgages. Fueled by a booming housing market thanks to low rates and rising prices as more people are moving to the suburbs, JPMorgan Chase reported a 16% jump in real estate loan revenue a year ago.
Dimon said during the call with reporters that the housing market should remain robust, as there is still a shortage of supply that is driving home prices.