![Solid profits at banks as execs debate US economic risks](https://www.berlinertageblatt.de/media/shared/articles/d3/76/3e/Solid-profits-at-banks-as-execs-deb-192947.jpg)
-
Venezuela takes diplomatic jab at Brazil in spat over election
-
Multiple people shot along highway in US state of Kentucky
-
'Super proud' Sabalenka downs Pegula to win US Open thriller
-
In Papua New Guinea, Pope holds mass 'at the edge of the world'
-
Hewett stays positive for wheelchair tennis despite agonising defeat
-
Three things on US Open champion Aryna Sabalenka
-
Sabalenka downs Pegula to win US Open thriller
-
USA men land Paralympic basketball three-peat, Jiang takes 7th swim gold
-
USA slump to first home defeat against Canada in 67 years
-
Argentina hand Australia record 67-27 loss in Rugby Championship
-
England impress on Carsley bow, Germany, Dutch hit five
-
AFP photographer wins top prize for Gaza coverage
-
No Love for Packers for three weeks after ligament sprain: reports
-
Pedro Almodovar: chronicler of modern Spain crowned in Venice
-
Almodovar wins top Venice prize for end-of-life film
-
Trump sounds dark tone at rally, Harris 'ready' for debate
-
Wirtz and Musiala dazzle to kick-start new Germany era
-
Chinese teenager takes 7th gold of Paris Paralympics
-
England interim boss Carsley 'respects' divided opinions over anthem
-
Neuville moves to the front in the Acropolis Rally
-
Garfield, Pugh charm Toronto in new romance 'We Live in Time'
-
21 boys confirmed dead in Kenya school inferno
-
Over 100,000 protest in France against new prime minister
-
Golden 30 minutes takes China to swimming Paralympics swimming domination
-
Green leads Australia to T20 series sweep of Scotland
-
Nigeria, Cameroon win afer chaotic AFCON build-ups
-
Nicole Kidman: A-lister, cinematic chameleon, wins in Venice
-
'I had to prove myself', says Kolisi after win against All Blacks
-
Almodovar wins top prize at Venice film festival
-
Grealish savours England redemption after 'worst summer'
-
Carsley makes flying start as England interim boss in win over Ireland
-
Springboks close on Rugby Championship with storming win over All Blacks
-
Sri Lanka's De Silva and Kamindu Mendis defy England in third Test
-
Farrell's Racing lose on opening day of Top 14
-
Ireland and UK to 'reset' relations as Starmer visits Dublin
-
Dunbar takes second Vuelta stage as Roglic closes in on victory
-
Fritz eyes US Open glory to end 21 years of American hurt
-
Thousands protest in France against new prime minister
-
Death toll from Kenya school blaze rises to 21
-
Brazil's right rallies for 'freedom' after X suspended
-
Trump to hold rally in swing state, Harris preps for debate
-
Stone at the double as Sri Lanka collapse against England in third Test
-
French tennis player takes legal action over online abuse
-
Italy backs Kyiv's 'legitimate defence' as Zelensky presses allies
-
The Body Shop rescued from administration after deal
-
Martin roars to victory in San Marino sprint, extends MotoGP lead
-
Smoke and screams: The horror of Kenya's school dorm inferno
-
MotoGP leader Martin roars to victory in San Marino sprint
-
Ireland and UK to 'reset' relations as Starmer begins Dublin visit
-
Ma Lin turns brutal encounter with bear into glorious Paralympic career
![Solid profits at banks as execs debate US economic risks](https://www.berlinertageblatt.de/media/shared/articles/d3/76/3e/Solid-profits-at-banks-as-execs-deb-192947.jpg)
Solid profits at banks as execs debate US economic risks
Large American banks reported solid earnings Friday behind still-high interest rates while offering varying views on the likelihood the United States can avoid a near-term recession.
JPMorgan Chase reported higher profits, citing increased asset management and investment banking fees as well as the lift from lofty interest rates, while Citigroup and Wells Fargo reported dipping profits on higher costs.
Compared with a year ago, the banks have seen some uptick in write-offs for bad loans, reflecting the weaker profile of low-income consumers. However, bankers still point to a healthy American employment market and a lingering boost from pandemic-era government spending.
Officials such as Federal Reserve Chair Jerome Powell have pointed to the chance the US economy can achieve a "soft landing" -- shifting relatively painlessly from a period of high growth and elevated inflation to one of slower growth, while avoiding a recession.
While allowing that "many economic indicators continue to be favorable," JPMorgan Chief Executive Jamie Dimon highlighted risks to the outlook, including geopolitical instability and the possible persistence of inflation.
"The market is probably too happy," Dimon said on a conference call with reporters. "I think the chance of bad outcomes is higher than other people think."
Dimon's comments echoed his tone in a shareholder letter this week in which he warned interest rates could go even higher. He emphasized that he is not predicting this but merely pointing it out as a possibility.
On Friday, Citigroup Chief Financial Officer Mark Mason offered a somewhat more optimistic appraisal.
While noting that "there's a lot of risk out there," Mason characterized the global economy as generally "resilient," with consumers mostly healthy and inflation "moving in the direction that central banks want."
Mason sees a "soft landing" in the United States as "increasingly likely" and says Europe appears poised for modest growth after a period of stagnation.
The chief concern, along with geopolitical risk, "is still around inflation" and the question of when, and by how much, rates will fall, Mason said in a conference call with reporters.
- Job cuts -
At JPMorgan, profits came in at $13.4 billion, up six percent from the year-ago period, boosted by higher net interest income (NII) -- the benefit from charging more for loans minus the higher interest paid to depositors.
Revenues rose nine percent to $41.9 billion.
Markets were a weak spot, with trading revenue dropping for fixed income and staying flat for equities.
While JPMorgan increased its estimate for full year NII by $1 billion, to $89 billion, the bank said it expects the boost from higher interest rates on profits to erode or "normalize" over time.
At Citi, profits were $3.4 billion, down 27 percent from the year-ago period, in part due to a two percent drop in revenues to $21.1 billion.
While the results were boosted by higher NII, that was offset by the impact of higher credit losses.
Another drag came from $110 million in severance costs. Through the end of the quarter, Citi has cut 7,000 of the 20,000 jobs targeted in a global reorganization, Mason said.
Wells Fargo reported profits of $4.6 billion, down seven percent from the year-ago period. Revenues rose one percent to $20.9 billion.
Unlike the other two banks, Wells Fargo had an eight percent drop in NII, which it attributed to a shift in consumers to higher interest products.
But the bank cited higher investment banking fees as a strong point and said it reduced provisions for commercial real estate and auto loans -- two areas that have seen an erosion in credit quality in recent quarters.
Shares of JPMorgan slumped 4.5 percent, while Citi rose 0.1 percent and Wells Fargo climbed 0.3 percent.
P.Anderson--BTB