Big Banks Gear Up for Losses Again as Economic Worries Mount

All four of the largest US banks beefed up the funds they set aside to cover future losses for the first time since the third quarter of 2020.

JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., and Wells Fargo & Co. boosted their provisions for loan losses by a total of $3.5 billion, an accounting move that reduces earnings and signals that the megabanks are wary about a souring economy.

“We are increasingly concerned about the possibility of a recession next year,” Citigroup CEO Jane Fraser told analysts on the bank’s earnings call Friday. “But ...