Big U.S. banks, buoyed by rising interest rates and consumer resilience, posted strong results at the end of 2022 but forecast a weaker economy and set aside more cash to pay down potential debt, according to AFP.

The largest of these, JPMorgan Chase, now sees a “moderate recession” starting in the fourth quarter as the most likely scenario, while Citigroup and Bank of America have given a “deteriorating” outlook and Wells Fargo has a “less favorable” economic outlook.

To prepare for their clients defaulting, they increased their reserves: $1.4 billion at JPMorgan, $640 million at Citigroup, $403 million at Bank of America and $397 million at Wells Fargo.

Meanwhile, institutions continued to generate profits, even if they were sometimes lower than in 2021.

In the fourth quarter, JPMorgan’s net income rose 6% to $11 billion, while Bank of America’s rose 2% to $6.9 billion.

On the other hand, they fell by 21% to $2.5 billion at Citigroup and by 50% to $2.9 billion at Wells Fargo, which also had to record significant expenses related to past scandals.

The US economy now remains “strong, consumers continue to spend and businesses remain healthy” as the effects of the pandemic continue to fade, JPMorgan chief Jamie Dimon said.

Spending by the bank’s retail customers on debit and credit cards increased by 9%.

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