Big Banks Unleash $5 Billion From Reserves on Loan Optimism (1)

Jan. 15, 2021, 5:16 PM

Wall Street’s worst fears about the fallout from Covid-19 are receding.

Three of the biggest U.S. lenders -- JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. -- cut their combined reserves for losses on loans by more than $5 billion, helping fourth-quarter profit top estimates even as they faced headwinds from low interest rates. While posting results Friday, executives expressed guarded optimism about fiscal stimulus and rising vaccinations during a pandemic in which delinquencies have remained low. Still, the banks warned the economy isn’t out of the woods yet.

Six of the largest U.S. banks urgently ...

To read the full article log in. To learn more about a subscription click here.