JP Morgan puts more money aside for defaults amid cost of living crisis

Wall Street bank’s profits rise 40% to $13.3bn as interest rates charged to borrowers increase

One of the world’s largest banks, JP Morgan, is preparing for a potential surge in defaults by borrowers as households face pressure from high inflation and ever-climbing interest rates.

The Wall Street bank put aside $1.7bn (£1.3bn) for credit losses between April and June, according its latest financial report, marking a 54% jump from a year earlier, when provisions totalled $1.1bn.