JPMorgan Chase, the largest bank in the United States, posted more profits last quarter. The bank benefited, among other things, from higher interest rates, which led to a strong increase in interest income. However, the financial group had to allocate more money to the so-called bad loans. These are loans that may not be repaid due to deteriorating economic conditions. CEO Jamie Dimon stated that he was considering a mild recession in the world’s largest economy.
JPMorgan’s profits reached $11 billion in the fourth quarter of 2022, compared to $10.4 billion in the previous year. The bank did better than analysts expected. Sales increased 17 percent to $35.6 billion. The company set aside $1.4 billion for bad loans last quarter. This was more than expected.
Other big banks like Bank of America and Wells Fargo, which also released numbers on Friday, also put more money into the strong pot. Bank results kicked off earnings season on Wall Street. Investment bank Goldman Sachs and Morgan Stanley will report results next week.
“Twitter junkie. Lifelong communicator. Award-winning analyst. Subtly charming internetaholic.”