JPMorgan Says Long-Term $25 Oil Means $1.5 Billion Reserve Boost
- First-quarter reserve rise expected to be about $500 million
- Sixty-one percent of oilfield-services exposure is rated junk
JPMorgan's Dimon: U.S. Consumer Wins From Low Oil Prices
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JPMorgan Chase & Co., the biggest U.S. bank, said it would need to boost reserves for impaired energy loans by $1.5 billion if oil prices hold at about $25 a barrel over 18 months.
The first-quarter increase to reserves for oil and gas is expected to be about $500 million, bringing the total set aside to $1.3 billion, the New York-based firm said Tuesday in a presentation on its website. About 61 percent of the company’s oilfield-services credit exposure is now rated junk, the firm said. JPMorgan is scheduled to hold an investor day conference later Tuesday to detail its financial outlook.