The bank, based in New York City, is expected to report home-equity losses of about $1.4 billion a quarter for 2009. It also plans to reduce its workforce by almost 12,000. The job cuts are related to its acquisition of the failed Washington Mutual, a savings and loan company.

During its investor day, company executives pointed out that home-equality portfolio losses due to unabated foreclosure homes crisis, could increase to about $1.4 billion a quarter for the whole year.

Furthermore, the bank expected that its non-credit loans will be affected by the continuing drop in prices of housing units, the soaring number of foreclosure homes and the weakening economic climate in the United States.

JPMorgan Chase's head of consumer banking business Charlie Scharf predicted that home-equity portfolio losses and foreclosure homes will continue to increase without any sign of slowing down in the near future.

Home equity losses are reported significantly in states with a high concentration of foreclosure homes, including California, Florida and Nevada.

For the last quarter of 2008, JPMorgan reported a home-equity loss of about $770 million.

The bank also pointed out that it is prepared for the possible increase of the unemployment rate to nine percent before the year ends. However, it stands by its previous announcements that non-collectible loans or net charge-offs in its portfolio of credit cards would reach 7 percent for the current quarter of 2009.

JPMorgan's losses in various aspects of its operations are attributed to the foreclosure crisis and the uncertainties in the housing market.

Meanwhile, JPMorgan also clarified its recent acquisition of the banking operations of Washington Mutual during the investor day presentations. Before 2008 ended, the bank outlined its plans to streamline its workforce in relation to the acquisition to about 12,000, with 9,200 of these employees from Washington Mutual.

In October 2008, the bank announced that it will modify loan terms for about 400,000 owners of distressed properties, accounting for almost $70 billion in mortgage loans. It eliminated its pay option loans program and offered modified loan terms to struggling homeowners before they default on their payments.

It is one of the major banks in the country that offered a 90-day foreclosure moratorium in anticipation of President Barack Obama's foreclosure prevention plan.