Big Banks Unleash $5 Billion From Reserves on Loan Optimism
- Trio of U.S. lenders beat profit estimates amid muted defaults
- Still, JPMorgan’s Dimon stresses economic uncertainty remains
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Wall Street’s worst fears about the fallout from Covid-19 are receding.
Three of the biggest U.S. lenders -- JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. -- cut their combined reserves for losses on loans by more than $5 billion, helping fourth-quarter profit top estimates even as they faced headwinds from low interest rates. While posting results Friday, executives expressed guarded optimism about fiscal stimulus and rising vaccinations during a pandemic in which delinquencies have remained low. Still, the banks warned the economy isn’t out of the woods yet.