A trio of US banks reported strong profits Wednesday, boosted by the improved credit quality outlook despite headwinds from lower interest rates and tepid trading revenues.
Results from Bank of America, Citigroup and Wells Fargo followed similarly positive earnings released Tuesday from Goldman Sachs and JPMorgan Chase, with the bottom line surging in comparison to the year-ago period when the industry set aside billions of dollars in case of loan defaults during the coronavirus pandemic.
Banks note that the pandemic, along with rising inflation, remains a source of economic uncertainty.
But the doomsday scenario of a deluge of client defaults has not happened, thanks in large part to the reopening of the US economy brought on by the widespread availability of coronavirus vaccines.
“The pace of the global recovery is exceeding earlier expectations and with it, consumer and corporate confidence is rising,” said Citi Chief Executive Jane…