Chase Q1 earnings reflect crisis preparation - Business Insider - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 51%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Chase's Q1 income was largely affected by an increase in credit costs as it builds up its reserve in preparation for the effects of the coronavirus

The bank's income was largely affected by an increase in credit costs as Chase builds up its reserve in preparation for the effects of the coronavirus on clients. The pandemic hit the US economy hardest only at the very end of Q1, but Chase's credit costs in the period still totaled $8.3 billion, comprising $1.5 billion in charge-offs and a whopping $6.8 billion in buildup to its credit reserves.

The latter is being set aside because the bank is preparing for the effects of a recession and the accompanying possible losses on loans made to consumers and companies working to weather the coronavirus crisis, per the Journal. And the bank may not stop there, saying it might set aside even more of its profits in the future to cover loan losses if its dire expectations for Q2 prove true, such as a catastrophic expected unemployment rate of 20% .

While Chase is clearly bracing for serious loan losses, its customer-focused approach to the coronavirus could yield it favor with clients in exchange.

These measures to continue helping customers through the crisis even in the face of major losses could help the bank curry favor with clients and give it a human touch despite its monolithic size.Business Insider Intelligence analyzes the banking industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

PM Modi SAID I respectfully bow to the people of India... coronavirus Covid_19 lockdown Modi

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

JPMorgan Chase is set to report first-quarter earnings following Dimon's dire warning about economyJPMorgan is the first major U.S. bank to report earnings. Lmao $1.84? Did the scumbag analysts just sneak a revision in there? They will probably miss and guide down and the Dow will still go up 500 points. The Fed controls the market now. 9 Wall Street Execs Who Cashed In on the Crisis. Meet the moguls who made out like bandits. (NO JAIL TIME) BIG FAT BONUSES.!! 2008.!! TAX CUTS TO THE RICH DON'T WORK!! WHEN YOU DON'T PUT THESE SOB'S IN JAIL YOU GET MORE OF THE SAME.!!
Source: CNBC - 🏆 12. / 72 Read more »