Jamie Dimon, CEO of JPMorgan Chase, still worried about the US economic recovery

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But JPMorgan Chase CEO Jamie Dimon still seemed a little nervous about the near-term economic outlook, citing the lingering effects of the Covid-19 pandemic.

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

Dimon noted in the bank’s earnings release that the build-up of credit reserves “continues to reflect significant near-term economic uncertainty and will enable us to weather an economic environment much worse than most current baseline forecasts. economists “.

Dimon, however, cited “the positive vaccine and stimulus developments” as a sign of hope for the future.

He added on a conference call with reporters that we could have a “very healthy economy” by the summer – especially if unemployed Americans and small businesses “in desperate need of help” get the job done. more stimulus payments from new administration Joe Biden and Democratic-led Congress.
Actions of JPMorgan Chase (JPM), which were already up 11% so far in 2021 ahead of the earnings report, edged down on Friday but still trading at an all time high.
JPMorgan Chase also does better than its banking competitors Citigroup (VS) and Wells fargo (WFC) which both reported mixed results on Friday morning.
BlackRock now has a whopping $ 8.7 trillion in assets

JPMorgan Chase reported strong gains in its investment banking unit and a sharp rise in trading income. The rebound in the stock market has been good for the bank, as has the resurgence of the initial public offering and trading.

The bank’s consumer activities are still suffering a bit. Revenue fell 8% within the unit in the fourth quarter, as banks posted lower net income from its major consumer banking and credit card businesses.

Jennifer Piepszak, chief financial officer of JPMorgan Chase, said on a conference call with reporters that the bank does not expect demand for loans to increase as much this year despite persistently low interest rates.

The only positive point in the consumer sector? Mortgages. Fueled by a booming real estate 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 compared to to a year ago.

Dimon said on the call with reporters that the housing market is expected to remain robust, as there is always a supply shortage that drives up housing prices.

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