Large US banks reported Friday a mixed fourth quarter to conclude a turbulent year, but expressed optimism about 2021 thanks to the coronavirus vaccine and additional fiscal stimulus.
JPMorgan Chase, Citigroup and Wells Fargo all modestly lowered their reserves set aside earlier in the pandemic when coronavirus shutdowns prompted the banks to establish huge provisions in case of a wave of defaults due to a much sharper economic downturn.
The banks are still keeping billions of dollars in provisions for bad loans in case the economy takes another turn for the worse.
But executives are generally hopeful about the new year as coronavirus vaccines become more widely deployed and as President-elect Joe Biden advances a fiscal package expected to keep households flush with enough funds to pay their bills. Read more…..
Chart of the Day
CNBC’s Wilfred Frost breaks down JPMorgan Chase’s third-quarter earnings results.