But Inflation is clouding the outlook for 2022, based on comments from bank executives to reporters and industry analysts. They foresee higher inflation this year and are faced with higher costs for compensation as the banks compete for talent and employees. Wall Street could hear similar comments in the next few weeks as the rest of Corporate America releases results and shares its outlook for the upcoming year.
Citi brought in $21.95 billion last year. That exceeds what Citigroup made in 2006, when the bank earned $21.2 billion at the height of the mortgage bubble and when Citigroup was a financial conglomerate significantly larger than what it is today. “Labor markets are tight, that there’s a little bit of labor inflation, and it’s important for us to attract and retain the best talent and pay competitively,” said Jeremy Barnum, JPMorgan’s CFO, in a call with reporters. Barnum said he expects the bank will face “headwinds” this year, including higher wages, that could impact its profitability.
One positive thing for banks, if inflation continues, is rising interest rates. The Federal Reserve has already telegraphed to investors that the central bank is considering at least three interest rate hikes this year to keep inflation in check. Higher interest rates mean banks can charge more to borrowers for loans.
In a call with investors, JPMorgan CEO Jamie Dimon said it could take “six or seven” rate hikes this year to get inflation under control.
Improving economy? Really abc do you live under a rock?
Oh but the seditionists on Faux News keep crying that the economy tanked for the 1%
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