Chief executive officer of JPMorgan Chase Jamie Dimon has said his company faces "highly challenging conditions" next year, while projecting a possible “strong recovery” in 2010, according to a document seen by Bloomberg and confirmed by a person in attendance.

Addressing staff in Hong Kong, Mr Dimon said the acquisitions of Bear Stearns and Washington Mutual would help JPMorgan's performance in the “longer term”.

Turning to local concerns, he said: “In Asia it's going to get worse than you think. I don't think Asia can avoid the fallout from the global problems.” He added that the region has potential for “very substantial natural growth” over a longer time horizon.

The firm may increase staff in India and the Philippines in coming years because they serve as “major international hubs for outsourcing of support functions.”