Business Markets

U.S: Banks report blowout profits

Three big U.S. banks JPMorgan Chase, Goldman Sachs, and Wells Fargo reported large jumps in quarterly earnings on Wednesday as they released reserves set aside to cover pandemic-driven loan defaults.

Setting aside less money to cover sour loans as the economy rebounded from the pandemic helped beef up the bottom line at the three lenders. Big jumps in investment banking and trading revenue also boosted profit at JPMorgan and Goldman. A surge in initial public offerings featuring private firms merging with listed shell companies kept investment bankers busy.

And the retail trading frenzy centered on so-called “meme stocks” like GameStop helped drive trading revenue up 57% at Goldman and 37% at JPMorgan. His bank is seen as a barometer of the health of the U.S. economy. Shares of Goldman Sachs rose in early trading Wednesday while JP Morgan and Wells Fargo fell slightly.

Sisanda Mpiti.

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