Big Bank Profits Mixed as Executives Warn of Uncertain Economic Outlook in 2022

Big banks like JPMorgan, Wells Fargo, and Citigroup reported mixed financial results for the first quarter of 2022. Profits were up slightly at JPMorgan but down at Wells Fargo and Citigroup.

Bank executives warned of an "uncertain" economic outlook for the rest of 2022, citing high inflation, geopolitical conflicts, and other pressures.

JPMorgan CEO Jamie Dimon warned risks "may very well be creating risks that could eclipse anything since World War II," referring to events like the Russia-Ukraine war.

Banks are concerned the Federal Reserve will have to raise interest rates higher and keep them elevated longer to combat persistent inflation. This could slow economic growth.

Wells Fargo saw loan balances and some metrics decline but had sanctions lifted after scandals, while Citigroup continues restructuring though earnings dropped 27%.