Big banks have reported record profits for the third quarter of 2021, signaling a robust economic recovery after the pandemic-induced recession. According to the latest earnings reports, the largest banks in the US have collectively earned over $96 billion in profits in the first nine months of this year.
The profits of JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup increased significantly from last year despite the uncertain economic conditions resulting from the COVID-19 pandemic. The banks’ financial performance was boosted by strong revenue growth, particularly in the trading and investment banking businesses, and reduced loan loss provisions due to an improved economic outlook.
JPMorgan Chase, the largest bank in the US, reported a profit of $11.9 billion, a 54% increase from last year’s third quarter revenue. The bank’s corporate and investment banking division had the strongest performance, with revenue increasing by 26% year-over-year due to a rise in debt and equity issuance and a strong rebound in merger and acquisition activity.
Bank of America also reported strong earnings, with a profit of $8.9 billion, up from $4.9 billion in the same period last year. The bank’s trading revenue surged by 29%, driven by an increase in client activity …