New York - (AFP) - Major US banks achieved strong results at the end of 2022, propelled by higher prices and market volatility, but they expected the economy to deteriorate and allocated more money to deal with potential defaults.

And the largest of them, JPMorgan 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 Wells expected Fargo said the economic environment was "less favorable".

In preparation for the eventual inability of their customers to pay their debts, banks have built up 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% to $11 billion at JPMorgan Chase and by 2% to $6.9 billion at Bank of America.

But it fell 21% to $2.5 billion at Citigroup and 50% 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 stressed that there were still many uncertainties about the "end 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."