The bank said it has credit reserves of more than $30 billion to help act as a cushion in case conditions deteriorate.
Dimon noted in the bank’s earnings release that the build-up in credit reserves “continue to reflect significant near-term economic uncertainty and will allow us to withstand an economic environment far worse than the current base forecasts by most economists.”
Dimon, however, did cite “positive vaccine and stimulus developments” as a hopeful sign for the future.
JPMorgan Chase reported solid gains in its investment banking unit and a healthy jump in trading revenue. The rebound of the stock market has been good for the bank, as has a resurgence in initial public offering activity and deal making.
The bank’s consumer business is still suffering a bit though. Revenue was down 8% in the unit in the fourth quarter as the banks posted declines in net income for its core consumer banking and credit card lending divisions.
JPMorgan Chase chief financial officer Jennifer Piepszak said during a conference call with reporters that the bank does not expect loan demand to pick up that much this year despite the continuation of low interest rates.
The one bright spot in the consumer business? Mortgages. Fueled by a booming housing market thanks to low rates and rising prices as more people are moving to the suburbs, JPMorgan Chase reported a 16% jump in home lending revenue from a year ago.
Dimon said during the call with reporters that the housing market should remain robust, because there is still a supply shortage that is boosting home prices.