‘We Still Face Much Uncertainty’: Pandemic Hammers Big Banks

“We still face much uncertainty regarding the future path of the economy,” JPMorgan Chase CEO Jamie Dimon stated Tuesday in an announcement accompanying the large financial institution’s monetary outcomes. Win McNamee/Getty Images cover caption

toggle caption

Win McNamee/Getty Images

“We still face much uncertainty regarding the future path of the economy,” JPMorgan Chase CEO Jamie Dimon stated Tuesday in an announcement accompanying the large financial institution’s monetary outcomes.

Win McNamee/Getty Images

The dramatic collapse of the U.S. financial system from the coronavirus is pummeling America’s largest banks.

Wells Fargo lost $2.4 billion within the second quarter — its first quarterly loss since 2008 in the course of the monetary disaster — and stated it expects to chop its dividend. Citigroup noticed its revenue drop 73% within the quarter.

And JPMorgan Chase, the nation’s greatest financial institution, was pressured to put aside billions of {dollars} extra to cowl dangerous loans in the course of the second quarter, however cash it constructed from buying and selling within the frothy monetary markets assured it made a revenue anyway.

“We still face much uncertainty regarding the future path of the economy,” regardless of some optimistic financial knowledge, CEO Jamie Dimon said in a statement.

The financial institution anticipates greater losses from industrial and shopper loans going bitter, because the pandemic continues its grip on the financial system, and stated it could put aside $10.47 billion to cowl them. That’s along with the $eight billion it put aside in the course of the first quarter.

Dimon stated JPMorgan Chase would proceed to pay its dividend, “unless the economic situation deteriorates materially and significantly.”

More so than some other huge financial institution, JPMorgan averted a loss in the course of the monetary disaster, and its efficiency is seen as a barometer of what to anticipate as different banks launch their earnings this week.

The financial institution made $9.7 billion from buying and selling shares and bonds, 79% greater than a 12 months earlier.

Citigroup CEO Michael Corbat stated his financial institution is “prepared for a variety of scenarios and will continue to operate our institution prudently given this unprecedented situation.”

In explaining his financial institution’s dividend reduce, Wells Fargo CEO Charles Scharf additionally cited the unsure financial outlook. “We believe it is prudent to be extremely cautious until we see a clear path to broad economic improvement,” he stated.

Leave a Comment

Item added to cart.
0 items - $0.00