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JPMorgan’s $2.1B reserve release drives 24% profit spike

October 13, 2021

Starting in early 2020, the banking industry, JPMorgan Chase included, began growing its loan-loss reserves in anticipation of bad loans over the economic impacts of the COVID-19 pandemic.

After setting aside billions over more than a year, banks have been steadily releasing those funds. JPMorgan’s credit reserve release of $2.1 billion this quarter eclipses the $569 million it released in the prior year​​.

On Wednesday, however, JPMorgan Chase CEO Jamie Dimon made it clear the bank does not consider its scenario-driven releases core or recurring profits.

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