13 Oct 2012

US housing market "has turned the corner" - JP Morgan

7:00 am on 13 October 2012

JP Morgan Chase says the housing market in the United States "has turned the corner".

Chief executive Jamie Dimon said on Friday that the bank would be reducing the amount it sets aside to cover losses from mortgages.

Net profit for the three months to the end of September was $US5.7 billion, up 33% from $US4.3 billion in the same period last year.

The BBC reports JP Morgan set aside $US1.8 billion to cover potential loan losses, down from $US2.4 billion a year ago.

"Importantly, we believe the housing market has turned the corner," Mr Dimon said in a statement.

The collapse of the US housing market sparked the banking crisis in 2008 that led to the global economic downturn.