- 'Business as usual' for Australia match-winner Carey amid boos
- Israeli jets pound Lebanon after deadly Beirut strike
- Ten Hag bemoans Man Utd's lack of killer instinct in Palace stalemate
- France's Macron appoints new government in shift to right
- Cheika proud of Leicester grit after winning start as boss
- Profligate Man Utd pay price in 0-0 draw at Palace
- Kane, Olise run riot as Bayern thump Bremen
- Diaz fires Liverpool top of Premier League, Man Utd held at Palace
- LIV champion Rahm out of LIV Team semis with severe flu
- Slot surprised by tearful Nunez's moment of magic
- Title rivals Norris, Verstappen on 'cool' front row for Singapore GP
- Biden talks China with 'Quad' leaders in hometown summit
- Juve and Napoli play out goalless draw in early Serie A title tussle
- Alcaraz fears tennis tour grind will 'kill us'
- Carey sparks recovery as Australia thrash England in 2nd ODI
- Leclerc, Sainz lament 'disappointing' Saturday in Singapore
- Bottega Veneta holds investors' aces as Madonna pops into D&G
- Beirut digs for victims at building flattened in Israeli strike
- Verstappen stages protest over 'ridiculous' swearing punishment
- Bayern boss Kompany lauds 'special talent' Olise
- Diaz fires Liverpool top of Premier League, Spurs bounce back
- Heavy fire over Israel-Lebanon border after deadly Beirut strike
- Ramos guides unbeaten Toulouse to Montpellier win despite Hogg scuffle
- Myanmar flood death toll jumps to 384
- Chelsea owners 'happy' with win at West Ham amid rift report
- Kane and Olise run riot as Bayern thump Bremen
- Ramos guides unbeaten Toulouse to Montpellier win
- Norris pips Verstappen to dramatic Singapore pole after Sainz crash
- Carey takes Australia to 270 in 2nd ODI against England after collapse
- Two Hezbollah leaders killed in Israel's Beirut strike
- Hungary Danube waters reach decade high after Storm Boris
- Bagnaia cuts Martin's MotoGP lead with Emilia-Romagna sprint win
- Jackson double fires Chelsea to victory at woeful West Ham
- Fiji beat Japan to lift Pacific Nations Cup
- Kasatkina to face Haddad Maia in Korea Open final
- S.Africa snowfall closes roads, strands motorists overnight
- Lawyers of women alleging Al-Fayed sex abuse receive over 150 new enquiries
- President Museveni's son backs Ugandan strongman for 7th term
- Norris quickest as Verstappen bounces back in Singapore practice
- Wallabies lament All Blacks' fast start
- Germany's Oktoberfest opens under tight security after attacks
- Environmental protesters block French cruise liner port
- Hezbollah in disarray after Israeli strike kills top commanders
- No place like home: Biden hosts 'Quad' leaders
- One dead, 7 missing as heavy rains trigger floods in central Japan
- Zelensky says no UK, US go-ahead to use long-range missiles
- New Zealand edge Australia 31-28 in Bledisloe Cup thriller
- Japan orders evacuations as heavy rains trigger floods in quake-hit area
- New Zealand pilot freed in Indonesia after 19 months in rebel captivity
- Hezbollah in disarray after Israeli air strike kills top commanders
JPMorgan Chase says US economy still solid, but risks rising
JPMorgan Chase said the US economy remains on solid footing for the short-term, but warned of heightened longer-term risks due to inflation and the Ukraine war as its reported lower quarterly profits.
Executives from the giant bank said households and businesses generally remained in good shape, amid a tightening labor market.
But higher consumer prices, the Ukraine war and the shifts in Federal Reserve policy together have slightly raised the recession risk, which led the bank to set aside $902 million in additional reserves as a buffer against possible bad loans.
"There's this very strong underlying economy," said Chief Executive Jamie Dimon, noting that many consumers are flush with cash and businesses in "good shape" for the most part.
But he pointed to "countervailing forces," including rising interest rates and inflation, and the war in Ukraine.
"And those things are going to collide at one point, probably sometime next year," he said.
"I'm not predicting a recession," Dimon added in a conference call with reporters. "But is it possible? Absolutely."
- 'Wars are unpredictable' -
The biggest US bank by assets, JPMorgan reported $8.3 billion in first-quarter profits, down 42 percent from the same three months of the prior year. Revenues dipped five percent to $30.7 billion.
JPMorgan scored higher net interest income, reflecting a boost to lending fees because of higher interest rates.
Profits fell in investment banking on lower equity and debt underwriting fees. The division also suffered a $120 million hit tied to upheaval in the nickel market in March that pressured some commodity brokerages, company officials said.
The results contrasted sharply from a year ago, when JPMorgan saw surging profits after it unlocked $5.2 billion in funds it had set aside early in the pandemic against potential defaults, but didn't need because of the surprisingly solid condition of clients.
In the latest quarter, JPMorgan set aside $902 million for bad loans, citing "downside risks" including the Ukraine war and surging inflation.
About $300 million of that amount is connected to Russia-related exposures, with the remaining funds reflecting broader economic risks, executives said.
Charge offs for the first quarter came in at a relatively modest $582 million, another sign of the healthy condition of consumers.
In terms of customer trends, Dimon cited an uptick in credit card spending on dining and travel, but said higher mortgage rates had dented home lending originations, while limited vehicle availability crimped car loan originations.
Dimon highlighted the Ukraine situation as a wildcard, warning that "wars are unpredictable" and the oil market could "change dramatically."
"The oil markets are precarious," he said, adding that "clouds are on the horizon."
JPMorgan's shares fell 3.5 percent to $126.90 in early trading.
Other large banks, including Goldman Sachs, Citigroup and Bank of America, will report results in coming days.
F.Pavlenko--BTB