Chief Executive Jamie Dimon said the economy is strong and growing, citing double-digit growth in card spending, low delinquencies and healthy household and consumer balance sheets. But the bank surprised Wall Street by setting aside $900 million in new funds to prepare for economic turmoil; a year ago, it freed up $5.2 billion it had reserved for potential loan losses in the pandemic’s early months.
Those extra funds could cushion the bank if the economy tips into recession, sending loan defaults higher. Mr. Dimon said that risk remains remote but has grown following Russia’s invasion of Ukraine and as inflation has hit its highest level in 40 years.
“Those are very powerful forces, and those things are going to collide at one point,” Mr. Dimon said. “No one knows what’s going to turn out.”
A recession, he said, is far from a sure thing. “Is it possible? Absolutely,” he said.
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