US bank profits rise, but executives raise more tariff warnings

Tatiana Bautzer - Reuters - 11/04
Profits at major U.S. banks beat forecasts in the first quarter as stock trading jumped, but executives warned on Friday that sweeping tariffs could fuel risks and weigh on economic growth.
  • Banks warn tariffs could slow economic growth
  • Executives highlight consumer and corporate caution amid tariff uncertainty
  • Banks report record revenue from stock trading
NEW YORK, April 11 (Reuters) - Profits at major U.S. banks beat forecasts in the first quarter as stock trading jumped, but executives warned on Friday that sweeping tariffs could fuel risks and weigh on economic growth.
Equity traders at JPMorgan Chase (JPM.N), opens new tab and Morgan Stanley (MS.N), opens new tab brought in record revenue as markets boomed at the start of the year, while Wells Fargo (WFC.N), opens new tab earned more fees from clients. But industry executives said consumers and corporations were becoming more cautious about U.S. President Donald Trump's sweeping tariffs, which have roiled markets and could spur inflation and tip the economy into recession.

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"Attention is now shifting to the storm clouds of tariff uncertainty," said Peter Torrente, a banking sector leader at KPMG in the U.S. "The magnifying glass is hovering now over fiscal policy and credit risk. The health of consumers’ finances is being carefully observed, as tariffs could lead to higher prices, impacting their loan repayment capability ... Monitoring loan demand from companies will also be an important area to watch."
While it is too early to understand the full implications of the tariffs, households and businesses were starting to respond to the import levies, executives at the biggest U.S. lenders said.
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