JPMorgan Chase & Co
The second-largest U.S. bank also said on Thursday that falling home prices may result in more borrowers with home equity loans owing more than their residences are worth. It said this could affect 35 percent to 39 percent of home equity borrowers at the end of 2009 and 36 percent to 41 percent at the end of 2010, up from 27 percent at the end of 2008.
JPMorgan said it expects to open 120 new retail branches this year, even as it cuts a net $2 billion of costs tied to its September acquisition of the banking units of the failed lender Washington Mutual Inc
The New York-based bank stood by its forecast for a 7 percent first-quarter net charge-off rate within its card services business.
JPMorgan disclosed its outlook on its website in slides to accompany an investor presentation later Thursday.
The bank's shares closed Wednesday at $21.73 on the New York Stock Exchange. JPMorgan slashed its common stock dividend 87 percent on Monday.
(Reporting by Jonathan Stempel; editing by John Wallace)