When JPMorgan Chase & Co. reported fourth-quarter results on Friday, Chief Executive Jamie Dimon said the U.S. economy was “resilient, ” with management saying a soft landing was likely. Executives at Bank of America Corp. also said they expected a soft landing, while Wells Fargo & Co. said consumer spending “remains strong.” Citigroup Inc., despite a messy and “very disappointing” fourth quarter, nonetheless also said that underlying growth was, in fact, “very strong” across its businesses.
Key points:
- JPMorgan Chase CEO Jamie Dimon said the U.S. economy is “resilient,” with a soft landing likely
- Executives at Bank of America and Wells Fargo shared similar sentiments, with both commenting on the strength of consumer spending
- Citigroup, despite a challenging fourth quarter, reported strong underlying growth across its businesses
- Other banks, including Morgan Stanley and Goldman Sachs, will be reporting their fourth-quarter results in the week ahead
Analysts expect banks to cut costs this year due to pressures to embrace more technology. Choppiness in the markets and deal-making is also expected, as investors await more clarity on potential interest-rate cuts from the Federal Reserve. Concerns about commercial real estate lending also persist, while trading revenues have been disappointing for some banks. This week, Morgan Stanley and Goldman Sachs will report their fourth-quarter results, providing further insight into the performance and outlook of the financial industry.
Key takeaways:
- Consumer spending remains strong, but growth rates and purchase volumes have slowed on credit and debit cards
- Banks are expected to cut costs and embrace more technology this year
- Choppiness in the markets and deal-making is likely, as investors wait for more clarity on interest-rate cuts from the Federal Reserve
- Concerns about commercial real estate lending continue, while trading revenues have been disappointing for some banks
- Upcoming fourth-quarter earnings reports from Morgan Stanley and Goldman Sachs will provide further insight into the financial industry’s performance and outlook
