JPMorgan earmarks funds to mitigate losses

The largest US bank, JP Morgan Chase, saw a 28% decline in net income from April to June as it increased reserves to cover potential customer loan defaults amid economic and geopolitical uncertainties.

The investment bank reported second-quarter earnings of $8.65 billion (£7.3 billion), or $2.76 per share, significantly lower than the $11.95 billion (or $3.78 per share) earned during the same time a year earlier. On Thursday, bank shares fell 4.3%, setting a new 52-week low.

Its CEO, Jamie Dimon, issued a note of caution over the path of the US economy as concerns mount that US central bankers may step up measures to combat inflation, which reached a 40-year high of 9.1% in June, by raising interest rates by one full point later this month.

“The US economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy,” he said.