U.S. housing market has 'turned the corner': JP Morgan chief

Last Updated: Sat, Oct 13, 2012 11:20 hrs

Chief executive of JP Morgan Chase Jamie Dimon has said that the U.S. housing market 'has turned the corner'.

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

Net profit came in at 5.7 billion dollars, up 33 percent from 4.3 billion dollars in the same period last year, the BBC reports.

According to the report, JP Morgan set aside 1.8 billion dollars to cover potential loan losses, down from 2.4 billion dollars, a year ago, it said in its results for the three months to the end of September.

"Importantly, we believe the housing market has turned the corner," the report quoted Dimon, as saying.

According to the report, the collapse of the U.S. housing market sparked the banking crisis in 2008 that led to the global economic downturn.

While the bank thinks the bottom of the housing market has been reached, Dimon warned, 'they also expect to see high default-related expense for a while longer.' (ANI)

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