The CEO’s statement echoed JPMorgan Chase’s earnings report, which called. Bank The economic outlook “a mild slowdown in the central sector.”
Bank of America CEO Brian Moynihan said. Friday that the is preparing for a possible recession in 2023. With unemployment expected to rise .
“Our baseline scenario envisages a mild recession. … But we also add to that a downside scenario, and that leaves 95% of our reserve approach . Weighted toward a recessionary environment in 2023. Moynihan said in a call with investors.
That pessimistic case. which is more negative than last quarter, calls for unemployment to rise to 5.5% earlier. This year and remain at or above 5% through the end of 2024, Moynihan said.
The CEO’s statement echoed JPMorgan Chase’s earnings report, which called. The economic outlook “a mild slowdown in the central sector.”
Bank of America beat estimates on the top and bottom lines for its fourth quarter, but its $1.1 billion. Provision for credit losses was a sharp reversal from a negative number for that metric a year ago.
While the bank said net credit charge-offs were still below pre-pandemic levels. Outstanding balances on credit cards rose 14% year-on-year, and Moynihan said . Delinquencies were rising from their low pandemic levels.
Shares of Bank of America rose less than 1% on Friday.
