WASHINGTON, (Reuters) – While bank chiefs in the United States were positive about the economy on Friday, pointing out an increase in lending and a rise in consumer spending; investors remain skeptical of the sector’s growth prospects.

JPMorgan Chase & Co (NYSE:), Citigroup Inc (NYSE: Wells Fargo (NYSE:) & Co, bellwethers of the U.S. economy, reported combined profits of $19 billion for the fourth quarter, each comfortably beating analyst estimates.

Analysts pointed out that reserve releases and other special items helped the beats and that the underpinning performances were not as compelling.

The bank shares were all down 2.1%. Wells Fargo, however, was the exception to the rule, despite concerns over falling trading revenues and slowing loan growth.

David Hendler from Viola Risk Advisors, a bank analyst, said “Investors worry about where growth will come from.” “There seems to not be much spark in the forward-quarters.”

According to bank executives, the U.S. economic trajectory is stable despite the headwinds of Omicron infections and 7% inflation.

Analysts were not pleased with the loan growth. However, consumers lending and spending increased.

Jamie Dimon CEO at JPMorgan stated that “the consumer is very powerful.” He stated that 2021, despite… Omicron and despite supply chains, was the greatest growth year ever.

JPMorgan was the nation’s biggest lender. Average loans increased 6% in the last year. However, combined debit-credit card purchases rose 26%. Wells Fargo saw its loans fall 3% over the same period, however, it experienced a 5% increase in second-half 2021 thanks to its consumer and commercial portfolios.

Citigroup’s overall lending declined because of the fact that corporations have more cash than they used to and can use other funding options. However, North American Citigroup cards had higher loan balances and spent 24% more in North America than a year ago.

Bank of America Corp (NYSE :), another major lender to consumers in the United States, reported earnings Wednesday.

Jason Ware is chief investment officer of Albion Financial Group which has JPMorgan shares.

Investors worry about rising inflation, and loan growth might not outpace deposit growth. Banks may also not benefit fully from an increasing yield curve due to higher benchmark rates.

Keith Buchanan from Globalt, Atlanta’s portfolio manager said “It gives us the perception that the economy might not be as strong”

EXPENSES, TRADING

Executives said that inflationary pressures have also affected expenses, as banks are facing fierce competition for talent and were forced to raise salaries to attract and retain employees.

Mason, Citigroup’s chief executive officer said that hiring has been extremely competitive in the company. “We’ve seen some pressure on what it takes to get talent.”

JPMorgan Wall Street business and Citigroup were mostly in line with expectations, both reporting significant declines on trading. However, this was mitigated by another great quarter for deals.

Goldman Sachs Group Inc (NYSE: Morgan Stanley Wall Street’s trading giants (NYSE:) will release their next report next week. They offer further insights into how Wall Street’s trading environment might look over the course of the year.

Analysts anticipate a continuation of normalization when the Fed reduces or eventually ceases its asset purchases.

Hendler stated that “you won’t have the fixed income trading boom you experienced in lower rates environments, when corporations were rushing to finance at lower rates.”