Major US banks report rising profits, cautious on economic outlook

Major US banks on Friday reported rising profits from higher interest rates on loans, but warned the economy was slowing as customers depleted their savings. JPMorgan’s profit jumped 35 per cent on the year-ago quarter, while Wells Fargo profit surged 60 per cent. Citigroup reported a more modest year-on-year 2 per cent gain. The banks benefited from higher interest rates, which have bolstered banks’ net interest income (NII), or the difference between what they earn on loans and pay out on deposits. The banks, however, sounded caution about the economic outlook.”Currently, US consumers and businesses generally remain healthy, although consumers are spending down their excess cash buffers,” said Jamie Dimon, JPMorgan Chairman and CEO. Wells Fargo said it was seeing charge-offs, or loans written off, increasing in its credit card portfolio.