The major US bank JP Morgan is threatened with a loss of up to one billion dollars from its commitments in Russia.

That's according to CEO Jamie Dimon's annual letter to shareholders at the world's most valuable bank, released on Monday.

Dimon did not write where the losses could come from, but pointed to second-round and indirect effects of the Russian invasion of Ukraine on the global economy.

He is not worried about the commitment in Russia, but the war could slow down the economy and have geopolitical consequences for decades to come.

However, after more than a decade of development work, JP Morgan's balance sheet is now a "bulwark", so that the bank would also be able to cope with losses of 10 billion dollars "and still be in very good shape".

"We face challenges at every turn: a pandemic, unpredictable government actions, a strong recovery from a deep global recession, a polarizing US election, rising inflation, a war in Ukraine and dramatic economic sanctions against Russia," Dimon wrote in his letter, which received much attention on Wall Street - the 17th of his tenure as JP Morgan chief.

Dimon wants more US military in Europe

The number of interest rate hikes by the US Federal Reserve "could be significantly higher than the market is expecting," he warned.

Dimon called on the United States to increase its military presence in Europe at NATO's external borders.

“America must be ready for a widening war in Ukraine with an unpredictable outcome.

We should prepare for the worst and hope for the best.” He reiterated his call for a “Marshall Plan” to secure the energy supply of the US and its European allies.

With a view to the strained relations with China, the head of the bank wrote that the USA had to reorganize its supply chains and fight against unfair competition.

In the future, suppliers should only come from the country itself or from “absolutely friendly allies”.

The JP Morgan chief defended his plans to pour $2 billion into IT this year and spend money to expand market share in countries like Germany and the UK where the bank is lagging behind its competitors.

JP Morgan had spent $5 billion on acquisitions over the past year and a half.

As a result, less money will be available for share buybacks in the future, wrote Dimon - also because the bank had to increase its capital base at the behest of the supervisory authorities.