JPMORGAN Chase’s profit dropped in the third quarter as it built up provisions for potential loan defaults, the bank said on Friday (Oct 11).
Profit was US$12.90 billion for the three months ended Sep 30, compared with US$13.15 billion a year ago.
The lender set aside US$3.11 billion as provisions for credit losses, compared with US$1.38 billion a year earlier.
Banks are building up provisions – which act as a safeguard when borrowers default on their loans – to typical levels as consumers deplete the savings they built up during the pandemic.
Consumers’ financial health remains solid despite elevated interest rates and fears over unemployment. REUTERS
