JPMorgan said Thursday it is setting aside more money to cover bad loans made to energy and mining companies.
In its quarterly earnings report, the bank said it set aside $1.3 billion, or 49 percent more, year over year, for credit loss provisions, "driven by downgrades, including $124 million in the oil & gas portfolio and $35 million in metals/mining." Credit costs, driven by the oil and gas industry, increased as well, the bank said.
In spite of this, JPMorgan executives appeared to play down concern.
"Our energy book isn't that large," CEO Jamie Dimon said on the bank's earnings call with analysts. "We're not forecasting a recession; we think the U.S. economy looks pretty good at this point."
Not everyone on Wall Street is optimistic that distress is only being felt by companies dependent on commodities.