World - North America
Updated: January 10, 2023

US Banks Get Ready For Recession, Cut Jobs

By Quadri Adejumo
January 10, 2023
0

U.S Banks are forecast to report lower fourth-quarter profits this week.

Four American banks; JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc and Wells Fargo & Co will report earnings on Friday.

The banks are also expected to report an average 17% drop in net profit in the fourth quarter from a year earlier, according to estimates from Refintiv.

Morgan Stanley analysts led by Betsy Graseck said; "With most U.S. economists forecasting either a recession or significant slowdown this year, banks will likely incorporate a more severe economic outlook."

Amid rising prices and inflation, firms have been prompted to slash compensation or eliminate jobs.

Goldman Sachs will start laying off thousands of employees from Wednesday. Morgan Stanley and Citigroup, have also cut some jobs.