JPMorgan Chase still minting money even as inflation and rates rise

JPMorgan Chase reported strong fourth-quarter results on Friday, including earnings of $10.4 billion that beat expectations. However, JPMorgan Chase earnings were down 14% compared to the same quarter a year earlier, as trading returns declined.

shares c. B. Morgan Chase (JPM) It fell more than 4% in pre-market trading on the news.
Consumers are beginning to show signs that they are fed up: Retail sales fell surprisingly in December. However, CEO Jamie Dimon was bullish about results for the full year and 2021. The bank achieved annual profits of 48.3 billion dollars.

“The economy continues to do well despite headwinds related to the Omicron variable, inflation and supply chain bottlenecks,” Dimon said in a statement. “Credit continues to improve…and we remain optimistic about US economic growth as business sentiment is upbeat and consumers benefit from job and wage growth.”

JPMorgan Chase and other big banks are benefiting from higher interest rates, making their loans more profitable — and an economy that has bounced back from the depths of the credit slump. Commercial lending rates have risen in anticipation of the Fed’s rate hike this year.

JPMorgan Chase also posted strong increases in advisory fees thanks to a buoyant environment for merger activity as well as strong demand for initial public offerings. JPMorgan Chase said global investment banking fees are up 37% from last year.

Bank shares have risen sharply so far this year and have outperformed the market for the past six months.

But higher interest rates could slow the recovery. The Federal Reserve has hinted that it will raise interest rates three or even four times this year.

Asked by CNN’s Matt Egan, Dimon said the Fed should “check” to make sure it can keep inflation in check and not slow down the economy too much.

However, Dimon added in a follow-up question from CNN Business that the economy is in much better shape now than it was in March 2020 and that we should “rely on our blessings” on that.

Dimon said he wouldn’t spend much time worrying about what the Fed would do and when because it would be “a waste of time to do it.”

Wells Fargo tops expectations

Rival Wells Fargo also reported strong results on Friday. Profits and revenue exceeded analyst expectations. The bank is taking steps to repair its public image after a series of painful scandals that have damaged its reputation and made it the target of more scrutiny and regulation in Washington.

Americans are putting themselves back in debt

“The changes we’ve made to the company and continued strong economic growth prospects make us feel good about our position in 2022,” Charlie Scharf, CEO of Wells Fargo, said in a statement. “But we also remain aware that we still have a multi-year effort to meet our regulatory requirements – with the potential for setbacks to continue along the way – and continue our work to put exposures related to our historical practices behind us.”

shares Wells Fargo (WFC) It was a little low though.
Citigroup, which also reported better-than-expected earnings and revenue, is continuing to sell assets under new CEO Gene Fraser. Citi shares fell 4% in early trading.
Citi said on Friday that it plans to sell its retail banking business in Indonesia, Malaysia, Thailand and Vietnam to Singapore’s UOB Group for $3.7 billion. The deal comes just days after Citi announced that it plans to exit retail banking in Mexico.

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