JPMorgan, Citi See an Economic Grind Rather Than a Spiral
- Loan-loss provisions were less than half what analysts foresaw
- Still, bank executives see a long road ahead for the economy
People ride their bikes through Times Square in New York on Oct. 12.
Photographer: Angela Weiss/AFP via Getty ImagesTwo of the biggest U.S. banks are gaining confidence that the pandemic won’t send the economy into a calamitous slide, even if they see a long path back to growth.
JPMorgan Chase & Co. and Citigroup Inc. set aside just $2.87 billion for loan losses in the third quarter, less than half what analysts expected and even lower than the charge-offs they had this period, in part because they’d already been aggressive in beefing up their reserves in the first half of the year. The lenders said they’ve been encouraged as consumers have been quick to pay down their credit-card bills and corporate borrowers have repaid the revolving credit lines they tapped at the start of the lockdowns.