JP Morgan warns of inflation and raises provisions

The largest US bank, JPMorgan Chase, on Friday made public a Increase in profits and income in the second quarter of the year, but warned about “inflationary forces” which may force interest rates to remain high for longer and increased its provision for credit defaults.

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JP Morgan had a quarterly profit of 18.149 billion dollars, up 25% compared to the same period in 2023, and revenues of 50.2 billion (up 22%) fueled by a gain of 7.9 billion derived from certain changes in its participation in the Visa company, according to a statement.

In addition to the extra income from participation in Visa, Without which quarterly profit would be lower than in the same period of 2023, the bank’s accounts include an increase in the provision for credit losses of 3.052 billion dollars, a sign of prudence in the face of the uncertainty expressed by its management.

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The firm’s chief executive, Jamie Dimon, one of the most listened to voices on Wall Street, applauded the results, but pointed out its dependence on lower inflation in the US.which can be hampered by forces such as “large fiscal deficits, infrastructure needs, trade restructuring and militarization.”

“The geopolitical situation remains complex and potentially the most dangerous since World War II, although its outcome and effect on the global economy are unknown,” Dimon stressed. On the positive side, JP Morgan saw its investment banking fee income rise by 50%.

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EFE