JP Morgan Chase's first-quarter profits fell almost 70% on the same period last year, according to figures the New York-based bank released today.
The bank reported net income of almost $2.9bn for the 1Q2020, down from about $9.2bn in 1Q2019.
Many of the Wall Street giant's biggest corporate clients drew down billions of dollars on existing credit lines and applied for billions more in new debt, the bank said.
The firm has increased its total credit reserves to $8.3bn, the highest since 2009, which chairman and CEO Jamie Dimon explained was related to "the likelihood of a fairly severe recession."
He added that JP Morgan Chase has entered the crisis "in a position of strength" with total liquidity resources in excess of $1trn, and noted that despite "a very tough and unique operating environment" the company had grown deposits in every line of business.
The asset and wealth management arm of the firm saw profits remain flat when compared with 1Q2019 and saw revenue increase by 3% to $3.6bn, which it attributed to "higher management fees on higher average market levels and net inflows over the past year", while overall assets under management increased 7% to a total of $2.2trn.
Just in January the lender posted record profits, with shares at record highs. Today shares in JP Morgan Chase are down 30% so far this year.
In addition, Wells Fargo reported an 89% drop in first-quarter profits, to $653m.