The big US banks reported good results from the first quarter mixed with uncertainty and apprehension about what the rest of the year holds. JPMorgan Chase beat first quarter estimates on the back of record equity trading and increased fees mergers underwriting and advising on mergers.
But it said it will set aside nearly $1 trillion for soured loans as it prepares to navigate 'stormy seas'. The results from the biggest U.S. bank offer a glimpse into the implications of Trump's trade agenda, said Reuters, capturing the cycle of optimism to pessimism in the last months.
"While his return to the White House boosted business optimism in the first quarter, policy uncertainty has upended those hopes. Chief executive Jamie Dimon said clients had become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions."
"The economy is facing considerable turbulence, including geopolitics," he added. Wells Fargo also beat profit expectations, and its chief executive Charlie Scharf similarly warned about problems ahead.
"We expect continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes."
Wells Fargo, still operating under the cap has been cutting back its workforce and investing in technology to improve efficiency.
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