- Ex-Barcelona and Spain great Iniesta retires aged 40
- Duo wins Physics Nobel for 'foundational' AI breakthroughs
- German 'Maddie' suspect could be free in 2025 after cleared of separate sex crimes
- China slaps provisional tariffs on EU brandy imports
- Ex-skipper Skelton eyes Wallabies November return
- Spanish great Iniesta leaves indelible legacy after retirement
- Indian Kashmir elects first regional government in a decade
- Hong Kong stocks crash, oil prices retreat on fading China boost
- Man City accuse Premier League of 'misleading' claims after legal case
- Duo wins Physics Nobel for key breakthroughs in AI
- Agha defies England as Pakistan post 515-8 in first Test
- September second-warmest on record: EU climate monitor
- Pastor wanted by US for sex trafficking to run for Philippine senate
- Mozambican writer Mia Couto dreams future leaders set an 'example'
- German 'Maddie' suspect could be free soon after cleared of separate sex crimes
- China says to take anti-dumping measures against EU brandy imports
- German suspect in 'Maddie' case cleared in separate sex crimes trial
- Israel expands offensive against Hezbollah in south Lebanon
- China stocks rally fizzles on stimulus worries amid Asia retreat
- Bangladesh's Yunus says no elections before reforms
- England strike twice as Pakistan reach 397-6 at lunch in first Test
- China stocks rally peters out on stimulus worries amid Asia retreat
- Taiwan's Foxconn says building world's largest 'superchip' plant
- Kenya's deputy president faces impeachment vote
- N. Korean soldiers 'highly likely' killed in Ukraine: Seoul
- 'Appeals Centre' to referee EU social media disputes
- US Supreme Court to hear 'ghost guns' regulation case
- 'Small' oil leaks detected in Samoa after NZ navy shipwreck
- Nobel literature jury may go for non-Western writer
- At Istanbul church, blessed spring offers hope to Christians and Muslims
- From Bolivia to Indonesia, deforestation continues apace
- Myanmar to send rep to regional summit for first time in three years
- Prabowo set to lead bolder Indonesia on world stage
- Tampa zoo rushes Chompers the porcupine and others to safety as Milton nears
- Shanghai stocks pare early surge on stimulus worries amid Asia retreat
- New Japan PM to hold talks on ASEAN sidelines
- Record number of climbers chase 14-peak dream in Tibet
- Former South Korea clinic for US 'comfort women' to be demolished
- China holds off on fresh stimulus but 'confident' will hit growth target
- Chiefs battle past Saints to stay unbeaten
- Deal on climate aid hangs in balance at UN COP29 summit
- Royals hit back against Yankees, Tigers maul Guardians
- German suspect in 'Maddie' case faces verdict in sex crimes trial
- Top economic official 'confident' China will hit 2024 growth target
- COP29 fight looms over climate funds for developing world
- Shanghai stocks soar to extend stimulus rally amid Asia-wide drop
- Australia moves to expand Antarctic marine park
- Tragedy of Madrid street sweeper highlights how heatwaves kill
- Survivors wait for aid as Trump's lies help cloud Helene response
- Fleeing Israeli bombs, Lebanon's displaced met with suspicion
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JPMorgan Chase says US economy still solid, but risks rising
JPMorgan Chase said the US economy remains on solid footing for the short-term, but warned of heightened longer-term risks due to inflation and the Ukraine war as its reported lower quarterly profits.
Executives from the giant bank said households and businesses generally remained in good shape, amid a tightening labor market.
But higher consumer prices, the Ukraine war and the shifts in Federal Reserve policy together have slightly raised the recession risk, which led the bank to set aside $902 million in additional reserves as a buffer against possible bad loans.
"There's this very strong underlying economy," said Chief Executive Jamie Dimon, noting that many consumers are flush with cash and businesses in "good shape" for the most part.
But he pointed to "countervailing forces," including rising interest rates and inflation, and the war in Ukraine.
"And those things are going to collide at one point, probably sometime next year," he said.
"I'm not predicting a recession," Dimon added in a conference call with reporters. "But is it possible? Absolutely."
- 'Wars are unpredictable' -
The biggest US bank by assets, JPMorgan reported $8.3 billion in first-quarter profits, down 42 percent from the same three months of the prior year. Revenues dipped five percent to $30.7 billion.
JPMorgan scored higher net interest income, reflecting a boost to lending fees because of higher interest rates.
Profits fell in investment banking on lower equity and debt underwriting fees. The division also suffered a $120 million hit tied to upheaval in the nickel market in March that pressured some commodity brokerages, company officials said.
The results contrasted sharply from a year ago, when JPMorgan saw surging profits after it unlocked $5.2 billion in funds it had set aside early in the pandemic against potential defaults, but didn't need because of the surprisingly solid condition of clients.
In the latest quarter, JPMorgan set aside $902 million for bad loans, citing "downside risks" including the Ukraine war and surging inflation.
About $300 million of that amount is connected to Russia-related exposures, with the remaining funds reflecting broader economic risks, executives said.
Charge offs for the first quarter came in at a relatively modest $582 million, another sign of the healthy condition of consumers.
In terms of customer trends, Dimon cited an uptick in credit card spending on dining and travel, but said higher mortgage rates had dented home lending originations, while limited vehicle availability crimped car loan originations.
Dimon highlighted the Ukraine situation as a wildcard, warning that "wars are unpredictable" and the oil market could "change dramatically."
"The oil markets are precarious," he said, adding that "clouds are on the horizon."
JPMorgan's shares fell 3.5 percent to $126.90 in early trading.
Other large banks, including Goldman Sachs, Citigroup and Bank of America, will report results in coming days.
H.E.Young--AMWN