By AnnaMaria Andriotis and David Benoit

JPMorgan Chase and Morgan Stanley both boosted provisions for future credit losses during the first quarter, citing changed macroeconomic outlooks.

JPMorgan set aside $973 million for potential future loan losses, partly because of its economic forecast. The provision was largely split between its lending to businesses and lending to consumers.

At Morgan Stanley, provisions for credit losses totaled $135 million in the first quarter compared with a release of $6 million a year prior. It cited in part "the impact of a weakening macroeconomic forecast."

The bank increased provisions in its institutional securities division, where it houses investment banking and trading, to $91 million in the first quarter compared with $2 million a year prior. In addition to the broader economic forecast, Morgan Stanley cited growth in its secured lending facilities and in corporate lending for the increase.

Morgan Stanley also increased provisions in wealth management, in part tied to mortgages it has given to wealthy clients whose homes were affected by the California wildfires.

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(END) Dow Jones Newswires

April 11, 2025 08:46 ET (12:46 GMT)

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