JPM’s reserves on undrawn loans rise 32% as Trump tariffs loom
Allowance on commitments nears $3bn as bank braces for stress among corporate borrowers
JP Morgan’s reserves for undrawn credit lines reached their highest level in four years at end-June, as the bank took stock of the potential impact of US tariffs on corporate borrowers’ cashflows.
The allowance for lending-related commitments jumped 31.8% in the second quarter, to $2.9 billion – the heftiest amount since Q2 2021 – far outpacing the 1.9% growth in the commitments themselves.
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