US banks build reserves on inflation risk, Russia; trading a bright spot

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US banks build reserves on inflation risk, Russia; trading a bright spot
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JPMorgan Chase & Co., Goldman Sachs Group, and Citigroup combined put aside $3.36 billion in credit loss reserves in the first quarter of 2022.

Goldman likewise cited “macroeconomic and geopolitical concerns” among other reasons for its $561-million provision and said it will take a $300-million first quarter hit on Russia.aggressive Federal Reserve interest rates risesThe war in Ukraine and Western sanctions could knock more than 1% off global growth this year and add two and a half percentage points to inflation, the Organisation for Economic Co-operation and Development has said.and Wells Fargo & Co.

Analysts had forecast trading revenue declines of 10% to 15% across the board compared with 2021 when central bank moves to stimulate the economy amid the pandemic saw equity indexes hit record highs and drove a trading bonanza across Wall Street. “Equity and fixed income again delivered exceptional results, particularly in Asia and Europe as we supported our global clients amid a turbulent backdrop,” chief executive James Gorman told analysts on a conference call.

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