JPMorgan Chase is adding another layer in its capital buffer against energy, metals and mining loan losses, setting aside $600 million for losses, executives announced Tuesday.
The bank also warned that first quarter revenue from investment banking fees is down about 25 percent year over year, with markets revenue down 20 percent from a year earlier. Shares traded near their lows of the day after the warning.
Nevertheless, bank CEO Jamie Dimon said the company is profitable and is glad he put up more than $26 million of his own money to buy 500,000 shares on Feb. 11. The stock is up about 4 percent since then, netting him more than $2 million in profit.
"I had a morning where I wasn't doing anything," Dimon said at the company's investor day presentation.
The bank also projected that, should the price of oil remain at or below $25 a barrel, it will have to set aside $1.5 billion more to cover potential losses through the next 18 months.
"We've taken reasonably conservative estimates," CFO Marianne Lake told attendees.
A report Tuesday from investment bank Jefferies, which is bullish on JPMorgan, notes that the bank's reserves against energy loans it funded represents a cushion of approximately 9 percent.