The head of JP Morgan, Jamie Dimon, has issued a stark warning to international markets not to underestimate existing threats, even as the American banking giant significantly increased its provisions for bad loans. The world's most powerful banker stressed that although the US economy remains "resilient" and trends among consumers and businesses are "generally healthy," risks have not disappeared. "The markets seem to be underestimating the potential risks—from complex geopolitical conditions and the risk of persistent inflation to overvalued asset prices," he noted.
Jamie Dimon added his voice to a chorus of warnings in the second half of 2025, expressing concern that the market surge fueled by Artificial Intelligence (AI) may lead to a sharp correction. Speaking to the BBC, he appeared "much more worried than others," pointing out that "most of those involved will not fare well" and that "a portion of the capital being invested will likely be lost."
The AI bubble
Fears of an AI bubble have caused tremors in Britain as well, despite commitments from major US corporations for domestic investments. Microsoft announced a £22 billion investment to create the largest supercomputer and AI infrastructure in the UK, while Nvidia and OpenAI presented plans for the largest AI computing power unit in Europe. Despite these concerns, markets continued to hit historic highs. However, the JP Morgan chief also raised the alarm regarding the rapid rise of private credit, following the collapse of auto parts company First Brands and subprime auto lenders Primalend and Tricolour. As he warned, in a worsening credit market, more "cockroaches" are likely to appear, hinting at the quality of credit assessments by certain banks.
Safety cushion
Dimon's statements coincided with the announcement of JP Morgan's Q4 2025 results, which recorded managed revenues of $46.8 billion. Simultaneously, the bank officially announced it would take over as the new issuer of the Apple Card, a move expected to transfer over $20 billion in card balances to the Chase platform. At the same time, JP Morgan significantly bolstered its "safety cushion," increasing provisions for bad loans to $4.7 billion in the fourth quarter, up from $2.6 billion a year earlier and $3.4 billion in the third quarter. This increase impacted profitability, with net profits falling to $13 billion, a 7% decrease year-on-year. Chris Beauchamp, chief market analyst at IG, described the results as "exceptional," highlighting strong customer inflows and payment revenues.
Taking on the World Economic Forum
Meanwhile, according to Sky News, Jamie Dimon is expected this week to introduce the UK Chancellor of the Exchequer, Rachel Reeves, at an event they will co-host at the upcoming World Economic Forum in Davos. The meeting will bring the heads of the world's largest multinational corporations to the same table as Reeves attempts to boost Britain's profile as an investment destination. Rachel Reeves maintains a close relationship with the JP Morgan chief as part of the effort to attract investment and stimulate growth. Following the Autumn Budget—where banks avoided an expected tax burden—JP Morgan announced a £10 billion investment in the UK with the construction of new offices at Canary Wharf.
The project is expected to create 7,800 new jobs in construction and related sectors. Upon completion, it will house up to 12,000 employees, serving as the bank's UK headquarters and its largest presence in Europe, the Middle East, and Africa. In total, JP Morgan contributes nearly £7.5 billion to the local economy and supports 38,000 jobs.
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