JP Morgan reports further losses on Steinhoff loans
Hike in net charge-offs related to sale of bad loans to South African firm
JP Morgan posted higher charge-offs in its corporate and investment bank (CIB) division in the second quarter, a hefty chunk of which were due to bad loans made to scandal-plagued South African retailer Steinhoff International Holdings.
The US bank reported net charge-offs, which refer to the total portion of outstanding loans unlikely to be paid back by delinquent borrowers minus recovered amounts, of $114 million as of June 30 – a 470% increase compared with the first quarter of this year.
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