JP Morgan: US housing Market Has Turned The Corner

Jamie Dimon, chief executive of JP Morgan Chase, has said the US housing market “has turned the corner”.

He said that his bank, which is the biggest in the US by assets, would be reducing the amount it sets aside to cover losses from mortgages.

The announcement came with the release of results for the three months to the end of September.

Net profit came in at $5.7bn (£3.5bn), up 33% from $4.3bn in the same period last year.

The bank set aside $1.8bn to cover potential loan losses, down from $2.4bn a year ago.

“Importantly, we believe the housing market has turned the corner,” Mr Dimon said in a statement.

But he warned that: “We also expect to see high default related-expense for a while longer.”

The collapse of the US housing market sparked the banking crisis that led to the global economic downturn.

BBC