JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) reported a dip in net income over the third quarter, as more was set aside to cover bad loans and chief executive Jamie Dimon warned on geopolitical tensions.
Some US$3.1 billion was set aside to cover credit losses against US$1.4 billion a year ago, the Wall Street bank reported on Thursday.
This included cover for US$2.1 billion of bad loans over the third quarter, as a further US$1.0 billion was set aside in case of future losses.
JPMorgan also reported net income fell 2% to $12.9 billion year on year over the third quarter, despite a 6% rise in revenue to $43.3 billion
Earnings per share climbed to US$4.37 from US$4.33 however, beating analysts’ expectations.
Dimon noted long-term net inflows climbed to a record US$72 billion during the quarter, coinciding with a 15% uptick in asset management fees.
He also warned of geopolitical tensions “getting worse,” highlighting “significant human suffering”.
“The outcome of these situations could have far-reaching effects on both short-term economic outcomes and more importantly on the course of history.
“Additionally, while inflation is slowing and the US economy remains resilient, several critical issues remain, including large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world.
“While we hope for the best, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment.”