We have read all the earnings call transcripts from the major U.S. banks so you don't have to.
Let's take a look at what $JPM, $MS, $GS, $BAC, $WFC, and $C had to say about inflation, credit levels, FED, and the general health of the economy.
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Let's take a look at what $JPM, $MS, $GS, $BAC, $WFC, and $C had to say about inflation, credit levels, FED, and the general health of the economy.
Thread 🧵
1. There aren't many signs of widespread distress in the system but CEOs and Boards are very cautious, according to $GS:
2. U.S. consumers and small businesses are on solid footing, according to $JPM:
3. The asset quality of $BAC's customers remains very healthy, although credit card charge-offs are increasing:
"We're not of the view that we're heading into a dark period. Whatever the negativity in the world is out there, that's not our house view."
4. $MS is, no doubt, the most optimistic among the banks:
4. $MS is, no doubt, the most optimistic among the banks:
5. $WFC is seeing an impact on consumer spending, credit, housing demand for goods and services, but the rate of the impact is not materially accelerating:
6. $JPM currently expects a mild recession:
7. And the same goes for $C, a mild recession is expected in the second half of the year:
8. $BAC, too, expects a mild recession:
9. The demand side is "a little soft" and people should "be careful", according to $BAC:
"I think there will be 0 increases this year, for sure"
10. $MS' James Gorman does not think the FED will raise interest rates in 2023, and is optimistic about the medium term:
10. $MS' James Gorman does not think the FED will raise interest rates in 2023, and is optimistic about the medium term:
11. $JPM expect the FED to cut rates later in the year:
"The second half of 2020 and 2021 were not normal. They were way inflated by the massive stimulus."
12. $GS' David Solomon reflects on the "reset of expectations" that is happening in the market:
12. $GS' David Solomon reflects on the "reset of expectations" that is happening in the market:
13. $WFC sees signs of weakness in commercial real estate, especially the office market:
14. $GS saw a worse-than-expected backdrop in the fourth quarter:
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