JPMorgan Chase & Co. joined the ranks of banking companies cutting quarterly dividends Monday.

James Dimon, the New York company's chairman and chief executive, called its 87% dividend reduction, to 5 cents a share, a "precautionary measure" that will save $5 billion of capital annually.

"Our action today is being done … to help ensure that our fortress balance sheet remains intact — even if conditions worsen significantly," Mr. Dimon said in a press release. "As always, our highest obligation during an economic crisis is to keep our company and franchise healthy, vibrant and strong for the future."

JPMorgan Chase said its first-quarter results so far are "solidly profitable, even after significant additions to reserves," and are "roughly in line with analyst expectations."

Analysts on average expect it to earn 32 cents a share this quarter, according to Thomson Reuters.

The dividend is payable April 30 to shareholders of record as of April 6.

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