JPMorgan Chase, Wells Fargo and Citigroup said consumers continued to borrow and spend, but their executives warned that geopolitical risks were intensifying. writes ‘The New York Times’.
JPMorgan Chase Chief Executive Jamie Dimon has sounded the alarm about the global effects of the conflict in Israel and Gaza. “This may be the most dangerous time the world has seen in decades,” he said in a statement accompanying the bank’s quarterly results.
He warned of “considerable impacts on energy and food markets, global trade and geopolitical relations.”
For Mr. Dimon, geopolitical intervention is nothing new: he constantly warns of the dangers of war in Ukraine and elsewhere.
It was setting the nation’s largest bank up for a spooky set of results, with other risks including high inflation and rising interest rates. But in a call with reporters, he described the conflict in Israel and Gaza as “the biggest and most important thing for the Western world.”
Otherwise, JPMorgan and other major banks appear to be operating smoothly. JPMorgan’s third-quarter profit reached $13.2 billion, up 35% from the same period last year. Bank executives said the tumult of the spring’s regional banking crisis, which led to JPMorgan taking control of the First Republic, was gradually fading.
Wells Fargo also reported earnings that beat analysts’ expectations: Third-quarter profit was $5.8 billion, up 61% from a year ago. But the bank’s chief executive, Charles W. Scharf, warned that he was seeing signs of stress among customers.
“The consumer remains quite resilient,” said Mark Mason, Citigroup’s chief financial officer. Payment rates were down slightly and spending was slowing, but only slightly. A so-called soft landing for the economy is increasingly likely, he added.
All banks, Mr. Dimon said, are in regular contact with each other on the potential effects of international conflicts. “We all climb the wall of worry a little,” he said.