Nonetheless, CEO Jamie Dimon was upbeat about the quarter and 2021’s full year results.
“The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks,” Dimon said in a statement. “Credit continues to be healthy … and we remain optimistic on US economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth.”
JPMorgan Chase and other big banks are benefiting from rising interest rates, which makes their loans more profitable — and an economy that has bounced back from the depths of the credit recession. Commercial lending rates have been rising in anticipation of Fed rate hikes this year.
Wells Fargo tops forecasts
Rival Wells Fargo also reported solid results Friday. Earnings and revenue topped analysts’ expectations. The bank has been taking steps to repair its public image after a bruising series of scandals that hurt its reputation and made it the target of more scrutiny and regulation in Washington.
“The changes we’ve made to the company and continued strong economic growth prospects make us feel good about how we are positioned entering 2022,” said Wells Fargo CEO Charlie Scharf in a statement. “But we also remain cognizant that we still have a multiyear effort to satisfy our regulatory requirements — with setbacks likely to continue along the way — and we continue our work to put exposures related to our historical practices behind us.”