JPMorgan, Citigroup and Wells Fargo Report Rise in Profits Amid Industry Turmoil

“We had a rough spell in March, but things are looking better now,” said JPMorgan’s chief financial officer, Jeremy Barnum.

The bank’s chief executive, Jamie Dimon, who has taken a leading role in bailing out smaller lenders, said the banking crisis was distinct, but that financial conditions were likely to tighten as lenders, including JPMorgan, become more conservative. “We are going to eventually have a recession, but that may be pushed off a bit,” he said.

JPMorgan set aside roughly $2.3 billion to protect against borrowers falling behind on their loans. That was up from $1.5 billion in the same quarter last year, largely because of a somewhat worse economic outlook, the bank said.

Citigroup, the country’s third-largest lender, reported a profit of $4.6 billion in the first quarter, up 7 percent from the same period last year and well ahead of forecasts. Revenue jumped 12 percent from the previous year, which came “despite the tumultuous environment for banks,” Jane Fraser, the bank’s chief executive, said in a statement.

The bank’s loan book was roughly unchanged and deposits fell 3 percent from the previous quarter.

Wells Fargo also surpassed analysts’ expectations, reporting a profit of nearly $5 billion in the first quarter, a 32 percent increase from a year ago. Rising interest rates lifted the bank’s earnings as its loan portfolio grew, led by gains in personal lending and higher credit-card balances.

Article source: https://www.nytimes.com/2023/04/14/business/jpmorgan-citi-wells-fargo-earnings.html