JPMorgan Chase CEO Jamie Dimon doesn’t believe the United States’ next recession will arrive in 2016.
Despite the banks 7% drop in profits for the first quarter, it’s first decline since the final quarter of 2014, Dimon is looking rather bullish on the US economy — at least for the next 8 months.
JPMorgan’s profits were hurt by an 88% increase in provisions for credit losses, which totaled $1.8 billion last quarter.
JPMorgan, which is the first big U.S. bank to report first-quarter results, is also feeling the brunt of what CEO Jamie Dimon called “challenging markets.” The company’s revenue slipped 3% to $24.1 billion.
These struggles were highlighted by a 24% decline in investment banking revenue due to lower debt and underwriting fees. Those fee drops make sense since no companies went public in the first quarter of the year.
JPMorgan also said its markets revenue and fixed income revenue slumped last quarter, reflecting a broader industrywide slump.
The good news is that Dimon doesn’t see a recession on the horizon. He noted the “healthy” trends for American consumers and JPMorgan’s ability to grow loans and deposits “impressively.”
“I don’t think you have a recession in 2016,” Dimon said. “The U.S. economy continues to plug along.”
One area Dimon did not speak about was Bernie Sanders’ recent comments that JPMorgan and other big companies are “destroying the moral fabric of America.”
He also failed to answer questions about the possibility that JPMorgan Chase could be broken up into smaller businesses.