NEW YORK (TheStreet) -- JPMorgan (JPM) - Get Report stock is declining 3.93% to $56.27 in early-afternoon trading, as the financial company sets aside an additional $600 million for losses related to the energy, metals and mining sectors.
JPMorgan is adding $500 million to the $815 million cushion against loans in the energy sector it had established by the end of 2015, according to CNBC.com. The bank is adding another $100 million to the $240 million it had set aside to combat loans within the metals and mining industry.
The bank estimates that if oil prices remain at or below $25 per barrel, it will need to put aside an additional $1.5 billion to cover possible losses during the next 18 months.
JPMorgan is now hoping to meet its profitability target of a 15% return on tangible common equity by 2018, rather than 2017 as previously anticipated, Reuters notes.
Within the energy sector, the company is most exposed to exploration and production companies, which make up 39% of its $44 billion energy portfolio, CNBC.com adds.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
JPMorgan's strengths include its growth in earnings per share, increase in net income, expanding profit margins, notable return on equity and relatively strong performance when compared with the S&P 500 during the past year.
You can view the full analysis from the report here: JPM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.