Shares of banks and other lenders and money managers gave back some of their recent gains as a down-tick in Treasury yields offset strong earnings from some of the largest U.S. banks.

JPMorgan Chase, the largest American bank by assets, posted a 42% increase in fourth-quarter profit to $12.14 billion, reflecting the bank's decision to release money from the multibillion-dollar reserves established to cover losses related to the pandemic-induced slowdown.

Similarly, Citigroup posted higher-than-anticipated fourth-quarter income as it drew down some of the reserves it had set aside to cover potentially soured loans. Another banking giant, Wells Fargo, said its profit rose 4% in the final three months of the year.

The big banks' earnings and accounting moves were the latest sign that, for many segments of the economy, the anticipated devastation from the coronavirus pandemic never materialized, at least not yet.

The red-hot initial-public offering market shows no signs of cooling, as dating app Bumble filed for a stock-market launch.


 Write to Rob Curran at rob.curran@dowjones.com 

(END) Dow Jones Newswires

01-15-21 1727ET