JPMorgan Chase anticipates additional credit cards and home loans losses in 2010

JPMorgan Chase expects additional losses on credit cards and home loans next year despite some signs the rate of losses is settling, according to a presentation published on its website on Tuesday.

 The second-largest US bank is considered as one of those that have best revived from the credit crisis, but as the recession drags on it is facing rising losses across its large consumer loan portfolios.

 The bank's home lending portfolio is supposed to lose 10% to 15% to about $240 billion in 2010, and $200 billion in 2011 at current production and run-off levels. This decline would reduce 2010 net interest income in the portfolio by about $1 billion from this year's levels, according to JPMorgan Chase report.

 By the first quarter of 2010, the bank’s losses on credit cards portfolio could reach 11%. Washington Mutual card losses could increase to 24% over the next several quarters.

 According to the JPMorgan ‘s presentation, bank is not sure these will continue, despite there are some initial signs of stability in consumer delinquency trends.