Huffpost Business

Subprime Loans Sink JP Morgan's Fourth Quarter

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JPMorgan Chase & Co. said Wednesday its fourth-quarter profit fell 34 percent after its exposure to subprime mortgages -- though much smaller than at banking peers like Citigroup Inc. -- devalued its portfolio by $1.3 billion.

CEO Jamie Dimon also attributed the bank's profit decline to worse-than-expected results in home equity loans.

In anticipation of more problems with U.S. consumers' ability to pay back their loans, the bank boosted its provisions for loan losses by $2.54 billion. That boost was higher than the $1.79 billion added during the third quarter and the $1.13 billion added in the fourth quarter a year ago.