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Bank results: JPMorgan and Wells Fargo start the season with reports

Bank results: JPMorgan and Wells Fargo start the season with reports

As investors assess the health of consumers — and how that impacts financial institutions — they should pay attention to credit trends in Friday’s reports.

“Banks’ resilience to credit downgrades is a key area of ​​interest,” Laurent Birade, head of banking at Moody’s, said in emailed comments. “While credit quality has generally remained robust, there are increasing signs of stress in certain sectors.”

Still, Birade noted that banks have tightened their lending standards and increased provisions for loan losses. Such factors “should mitigate potential risks and maintain overall financial stability,” Birade said.

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