Rising interest rates are going to be good for banks. Someday.
JPMorgan Chase reported record annual profit in 2021 on Friday. But a combination of that being driven in part by releases of set-asides for bad loans, plus uncertainty about 2022, will have many investors immediately looking past that remarkable result. For now that is putting some big pressure on the stock, which fell sharply Friday morning. Investors shouldn’t lose sight of the bigger picture.