Catenaa, Saturday, April 19, 2025-Major US banks reported strong profit in the first quarter of 2025, surpassing analysts’ expectations.
However, executives raised alarms over the economic impact of ongoing tariffs, warning of potential slowdowns in growth.
While trading revenues surged, with record performances in equity markets at JPMorgan Chase and Morgan Stanley, industry leaders cautioned that consumer and corporate caution could stifle further economic momentum.
Executives highlighted that businesses were hesitant amid the unpredictability of President Donald Trump’s trade policies.
JPMorgan’s CFO Jeremy Barnum noted that consumers were already adjusting to anticipated price hikes due to tariffs, and businesses were in a “wait-and-see mode,” uncertain about the long-term effects. Other banks, including Wells Fargo, reported gains in client fees, though uncertainty about the tariff situation clouded forecasts for future growth. Wells Fargo’s CFO Michael Santomassimo acknowledged a more cautious outlook for the remainder of the year.
Despite concerns about tariffs and potential inflation, Morgan Stanley CEO Ted Pick expressed optimism that the economy might avoid a recession. However, some clients delayed deals, contributing to a cautious market atmosphere.
Investment banking remained a key strength for Wall Street, with fees increasing at JPMorgan and Morgan Stanley, signaling resilience. However, executives from BNY Mellon and BlackRock warned of market volatility, and CEOs stressed the importance of regulatory adjustments to manage risks from tariff-related disruptions.
