JPMORGAN, CITI PROFITS IMPROVE AMID SIGNS OF RECOVERY
AppleMagazine|October 16, 2020
JPMORGAN, CITI PROFITS IMPROVE AMID SIGNS OF RECOVERY
Two of the nation’s biggest banks — JPMorgan Chase and Citigroup — said that their profits improved markedly over the summer, as the U.S. economy tried to bounce back from the coronavirus shutdowns that were imposed earlier this year.
Even so, both New York banks warned that much uncertainty remains about where the U.S. economy is headed, and top bank executives bluntly said there is a need for another economic stimulus package to keep the economy from slipping into recession again.

“A good, well-designed stimulus package will simply increase the chance we get better outcomes,” said JPMorgan’s Chairman and CEO Jamie Dimon in an conference call with reporters.

Both Citi and JPMorgan set aside fewer funds to cover potentially bad loans, contributing to the improvement in their third-quarter results. These loan-loss reserves, as they are known, are funds banks put aside when borrowers stop paying on their loans or there are economic signals that show a potential for more loans to go bad.

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October 16, 2020