And the largest of them, “JP Morgan Chase”, considers that the most likely scenario is a “moderate recession” starting from the last quarter, while “Citigroup” and “Bank of America” indicated the possibility of a “deterioration” in economic prospects, and “Wales” expected Fargo said the economic environment was “less favorable”.
In preparation for the possibility that their customers would not be able to pay their debts, banks increased their reserves by $1.4 billion at JPMorgan Chase, $640 million at Citigroup, $403 million at Bank of America, and $397 million at Wells Fargo.“.
Meanwhile, banks continued to reap profits, albeit at times less than achieved in 2021.
Thus, net profit in the fourth quarter increased by 6 percent to $ 11 billion in “JP Morgan Chase” and by 2 percent to $ 6.9 billion in “Bank of America”.
But it fell 21 percent to $2.5 billion at Citigroup and 50 percent to $2.9 billion at Wells Fargo.
JPMorgan CEO Jamie Dimon said the US economy remains “strong now, with consumers continuing to spend their money and businesses in good shape.”
He emphasized that the negative effects of the Covid pandemic continue to fade. But he emphasized that there were still many uncertainties about the “ultimate effects” of geopolitical tensions such as the war in Ukraine, the fragility of energy and food markets, inflation, and the key rate hikes initiated by the US Federal Reserve..
Dimon stressed that the bank will remain “vigilant and prepared for all possibilities.”
#large #provisions #major #banks #preparing #face #downturn #economy