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Financials

JPMorgan to increase oil and gas loan loss reserves by over 60 pct

Feb 23 (Reuters) - JPMorgan Chase & Co expects to increase its reserves to cover potential oil and gas loan losses by over 60 percent in this quarter, according to slides released by the bank ahead of its 2016 investor day on Tuesday.

The bank expects to set aside an additional $500 million for oil and gas loans in the first quarter, on top of the $815 million it had at the end of 2015. JPMorgan had also expects to increase reserves for metals and mining loan exposure by $100 million to $350 million.

Under a stressed scenario, with oil prices at $25 a barrel for 18 months, the bank said it would have to set aside an additional $1.5 billion in reserves. Oil prices are currently trading at $35 a barrel.

JPMorgan left other key targets, such as a 15 percent return on tangible common equity, unchanged from a year ago, according to the slides. (Reporting by Dan Freed; Editing by Carmel Crimmins and Chizu Nomiyama)

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