JPMorgan could lose about US$1 billion (R$ 4.6 billion) due to its exposure to Russia, Chief Executive Jamie Dimon said on Monday (4).
Dimon did not provide further details on the amount of potential losses for JPMorgan or a timeframe, but said the bank was concerned about the secondary impact of Russia’s invasion of Ukraine on companies and countries. Russia calls the action in Ukraine a “special operation”.
In his annual letter to shareholders, the president of the largest US bank by assets also said the United States must increase its military presence in Europe and reiterated a call for the development of a plan that guarantees the energy security of the country and allies. .
“The US must be ready for the possibility of a protracted war in Ukraine with unpredictable results. We must prepare for the worst and hope for the best,” he wrote.
Dimon addressed the relationship between China and the US, and said the US should overhaul the supply chain to narrow the scope to in-country suppliers or only include “completely friendly allies”. He urged the US to rejoin the Trans-Pacific Partnership (TPP), one of the world’s largest multinational trade agreements.
Commenting on the macroeconomic environment, Dimon said the number of interest rate hikes by the Federal Reserve “may be significantly higher than the market expects.”
Dimon has spent more than a decade building a balance of payments that he calls the bank’s “stronghold” and which, in his view, is now robust enough that JPMorgan can withstand losses of $10 billion or more. more and “still in very good shape”.
Dimon said the bank will reduce share buybacks over the next year to meet federally mandated capital increases “and because we’ve made some good acquisitions that we believe will improve the future of our company.”
JPMorgan went on a shopping spree, spending nearly $5 billion on acquisitions in the last 18 months. Dimon said this will increase “incremental investment expenditure” by about $700 million this year.
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