Jamie Dimon, CEO of JPMorgan Chase, is still nervous about the economic recovery in the US.

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But Jamie Dimon, CEO of JPMorgan Chase, still sounded a bit nervous about the near-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 act as a buffer in case conditions deteriorate.

Dimon noted in the bank’s earnings report that the build-up of credit reserves “continues to reflect significant short-term economic uncertainty and will enable us to cope with an economic environment that is far worse than most economists’ current baseline forecasts. . “

However, Dimon called “positive vaccine and stimulus developments” a hopeful sign for the future.

He added during a conference call with reporters that by the summer we could have a “ very healthy economy ” – especially if unemployed Americans and small businesses “ desperately in need of help ” get more stimulus payments from incoming Joe Biden administration. and the Democratic-led Congress. .
Shares of JPMorgan Chase (JPM), which was up 11% so far in 2021 before the earnings report, fell slightly on Friday but is still trading at an all-time high.
JPMorgan Chase is also outperforming banking rivals Citigroup (C.) and Wells Fargo (WFC) both of which reported mixed results Friday morning.
BlackRock now has a whopping $ 8.7 trillion in assets

JPMorgan Chase reported solid gains in its investment banking unit and a healthy jump in trading earnings. The stock market recovery has benefited the bank, as has a resurgence in IPO and deal closing activity.

However, the bank’s consumer business is still suffering a bit. Sales in the unit declined 8% in the fourth quarter as banks posted a decline in net income from their core consumer banking and credit card business.

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

The only ray of hope in the consumer business? Mortgages. Fueled by a booming housing 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 from a year ago.

Dimon said during the conversation with reporters that the housing market must remain robust as there is still a supply shortage driving up house prices.

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