JPMorgan Chase took a record $ 10.5 billion in loan loss charges in the second quarter, with the largest US lender warning of “uncertainty” ahead even as some indicators pointed to an economic recovery nascent.

Charges for loan losses, which included an increase in future bad debt reserves of $ 8.9 billion, left the bank with net income of $ 4.7 billion or $ 1.38 per share in the second quarter . It was nearly half of what he was making a year earlier, but far better than the $ 3.3 billion predicted by analysts in a Bloomberg poll.

Group-wide revenue rose 15% to nearly $ 33 billion, which was also better than analysts predicted, after volatile markets drove trading revenue up from almost 80%.

JPMorgan had previously warned that its second-quarter loan loss charges would be higher than the record $ 8.25 billion it set in the first three months of the year, as US banks United braced for an increase in defects.

“Despite some recent positive macroeconomic data and decisive and meaningful government action, we still face many uncertainties about the future course of the economy,” said Jamie Dimon, Managing Director of JPMorgan.

“We ended the quarter with massive loss absorbing capacity. . .[and]with a significant profit power which would allow us to absorb even more credit reserves if necessary ”, he declared.

As a result, Mr Dimon said JPMorgan was able to maintain its dividend payment “unless the economic situation deteriorates significantly and significantly”.

The stress of the coronavirus era was evident in some of JPMorgan’s key businesses. Its consumer and community bank took $ 5.8 billion in loan loss charges and fell to a loss of $ 176 million in the quarter, down from a profit of $ 4.2 billion a year earlier . JPMorgan’s commercial banking division posted losses of $ 691 million from a profit of $ 1 billion a year earlier.

Corporate and investment banking, which more than doubled its profits to an all-time high of $ 5.5 billion, was the best performer. At the end of May, investment bank manager Daniel Pinto said business income could increase by 50%. Trading income was actually up 79 percent, including a 99 percent increase in fixed income. Investment banking fees rose 54 percent.

The latest results also benefited from a gain of $ 515 million as the value of JPMorgan’s bridging loans was marked up, and $ 510 million of gains on its derivatives portfolio due to better market conditions.

The bank’s shares rose nearly 4% in pre-market trading, but abandoned those gains later in the session and were flat into the early afternoon.

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