JPMorgan Chase's quarterly profit slumped by more than two-thirds as the coronavirus pandemic and record low oil prices forced the largest US bank by assets to boost reserves to protect it from a wave of potential loan defaults.
Provision for credit losses jumped over five-fold to $8.3 billion (Dh30.4bn) in the first quarter, with two-thirds of the additional credit reserves taken for consumer loans.
"Given the likelihood of a fairly severe recession, it was necessary to build credit reserves," JPMorgan chief executive Jamie Dimon said in a statement.
Mr Dimon had warned shareholders last week that the coronavirus crisis would hurt profits "meaningfully" through 2020.
The pandemic has shut down businesses, put nearly 17 million people out of work in the US alone and is expected to cause a global recession not seen in generations.
The bank's net income fell to $2.87bn, or 78 cents per share, in the quarter ended March 31, compared with $9.18bn, or $2.65 per share, a year earlier.
Analysts on average had expected $1.84 per share, according to Refinitiv. It was not immediately clear if the reported numbers were comparable with estimates.
Profit was also hurt by a $951 million charge in its investment bank due to a markdown on the bank's bridge book.
There have so far been more than 1.9 million reported cases of Covid-19, the deadly respiratory disease stemming from the virus, and over 120,000 deaths, according to Johns Hopkins University, which is tracking its spread. More than 460,000 have recovered.
COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)
Date started: August 2021
Founder: Nour Sabri
Based: Dubai, UAE
Sector: E-commerce / Marketplace
Size: Two employees
Funding stage: Seed investment
Initial investment: $200,000
Investors: Amr Manaa (director, PwC Middle East)
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%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3ENetflix%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EKris%20Fade%2C%20Ebraheem%20Al%20Samadi%2C%20Zeina%20Khoury%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
OIL PLEDGE
At the start of Russia's invasion, IEA member countries held 1.5 billion barrels in public reserves and about 575 million barrels under obligations with industry, according to the agency's website. The two collective actions of the IEA this year of 62.7 million barrels, which was agreed on March 1, and this week's 120 million barrels amount to 9 per cent of total emergency reserves, it added.
The biog
Hobbies: Salsa dancing “It's in my blood” and listening to music in different languages
Favourite place to travel to: “Thailand, as it's gorgeous, food is delicious, their massages are to die for!”
Favourite food: “I'm a vegetarian, so I can't get enough of salad.”
Favourite film: “I love watching documentaries, and am fascinated by nature, animals, human anatomy. I love watching to learn!”
Best spot in the UAE: “I fell in love with Fujairah and anywhere outside the big cities, where I can get some peace and get a break from the busy lifestyle”
