International bank, JP Morgan Chase has posted a 6.7per cent crash in quarterly profits as it earmarks more funds to cover potential losses at oil and gas companies.
It was also hit by a fall in revenue from trading and investment banking.
Net profit fell to $5.52bn (£3.87bn) in the three months to the end of March from $5.91bn a year earlier.
The bank’s provisions for loan losses nearly doubled to $1.8bn in the first quarter, from $959m in the same quarter last year.
US shale oil companies have come under increasing pressure in the past year as the price of oil has plummeted.
That has forced banks to raise the money they set aside to cover the possible failure of energy firms.
In February, JP Morgan said it would set aside an additional $500m (£357m) to cover potential losses from its exposure to the oil and gas sector.
The bank has now set aside a further $713m to cover potential losses from oil and gas and commodities firms.
Of that total, $529m covers loans to oil and gas firms and $162m is allocated for loans to metals and mining firms.
The bank said total revenue fell 3per cent to $24.08bn.
