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Jamie Dimon Warns of ‘Most Harmful Time in A long time’ as Banks Report Large Earnings

JPMorgan Chase’s chief govt, Jamie Dimon, is as shut as Wall Road has to a statesman, and on Friday he sounded a serious alarm in regards to the world results of the battle in Israel and Gaza.

“This can be probably the most harmful time the world has seen in a long time,” he mentioned in a press release accompanying the financial institution’s quarterly earnings. He warned of “far-reaching impacts on vitality and meals markets, world commerce and geopolitical relationships.”

For Mr. Dimon, weighing in on geopolitics isn’t new: He persistently warns of risks from the struggle in Ukraine and elsewhere. On Friday, he mentioned he was getting ready the nation’s largest financial institution for a variety of scary outcomes, with different dangers together with excessive inflation and rising rates of interest. However on a name with reporters, he described the battle in Israel and Gaza as “the very best and most necessary factor for the Western world.”

In any other case, JPMorgan and different huge banks seem like working easily. JPMorgan’s revenue rose to $13.2 billion within the third quarter, a 35 % rise from the identical interval final yr. Executives on the financial institution mentioned the tumult of the regional banking disaster of the spring, which resulted in JPMorgan taking on First Republic, was steadily fading.

“U.S. customers and companies usually stay wholesome,” Mr. Dimon mentioned, “though, customers are spending down their extra money buffers.”

Wells Fargo, too, reported earnings that beat analysts’ expectations: Third-quarter revenue was $5.8 billion, up 61 % from final yr. However the financial institution’s chief govt, Charles W. Scharf, warned that he was seeing some indicators of stress amongst prospects.

Mr. Scharf cited the affect of the slowing economic system, and mentioned debtors had been lowering their mortgage balances — maybe good for customers, however a tough spot for banks, which generate income off lending. Losses on dangerous money owed rose “modestly,” he mentioned.

Citigroup’s revenue rose to $3.5 billion within the third quarter, a 2 % achieve that was barely increased than anticipated. “We actually are a financial institution for all seasons,” the financial institution’s chief govt, Jane Fraser, mentioned in a press release, including that every of the financial institution’s 5 core enterprise traces recorded income development in contrast with a yr earlier.

“The buyer stays fairly resilient,” mentioned Mark Mason, Citi’s chief monetary officer. Cost charges had been edging decrease and spending was slowing, however solely barely, he mentioned. Clients had been nonetheless spending and paying down their card balances extra steadily than that they had in 2019 earlier than the pandemic.

“The U.S. retains stunning us with its resilience,” he mentioned. A so-called tender touchdown for the economic system was more and more probably, he added.

The share costs of the three banks rose about 3 % on Friday, outpacing the general market. All the banks, mentioned Mr. Dimon, are in common contact with each other in regards to the potential results of worldwide conflicts. “We’re all climbing the wall of fear a bit,” he mentioned.



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