JPMorgan Chase CEO Jamie Dimon is still nervous about US economic recovery

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

The bank said it has credit reserves of more than $ 30 billion to help act as a pillow in the event of deteriorating conditions.

Dimon noted in the bank’s earnings statement that the accumulation of credit reserves “continues to reflect significant short-term economic uncertainty and will allow us to withstand a much worse economic environment than the current basic forecasts of most economists.”

However, Dimon mentioned the “positive evolution of the vaccine and the stimulus” as a hopeful sign for the future.

He added during a conference call with reporters that we could have a “very healthy economy” by the summer – especially if the unemployed Americans and small businesses “in desperate need of help” will receive more incentive payments from the future. Joe Biden administrations and the Democratic-led Congress.
Actions of JPMorgan Chase (JPM), which has already risen 11% so far in 2021 before the earnings report, fell slightly on Friday, but is still trading at an all-time high.
JPMorgan Chase also handles better than banking rivals City Group (C) and Fargo fountains (WFC) both of which reported mixed results on Friday morning.
BlackRock now has $ 8.7 trillion in assets

JPMorgan Chase reported solid gains in its investment banking unit and a healthy increase in trading income. The return of the stock market was good for the bank, as was a resurgence of the initial public offering activity and the conclusion of transactions.

The bank’s consumer business is still suffering a little. Revenues fell 8% in the unit in the fourth quarter as banks saw declines in net income for its core consumer banking and credit card divisions.

JPMorgan Chase chief financial officer Jennifer Piepszak said in a conference with reporters that the bank does not expect loan demand to grow so much this year, despite continued low interest rates.

The only bright spot in the consumer business? Mortgages. Fueled by a booming real estate market due to low rates and rising prices as more people move to the suburbs, JPMorgan Chase reported a 16% increase in home loan income a year ago.

Dimon said during the call with reporters that the real estate market should remain robust, as there is still a shortage of supply that raises house prices.

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