J.P. Morgan picks global systemically important banks over regionals amid tariff uncertainty

J.P. Morgan says it prefers global systemically important banks (G-SIB) amid uncertainty on the impact of tariffs on markets and loan growth

Flags fallout on investment banking, consumer spending, and loan growth plus wealth management

"With this uncertain outlook, we are cautious on bank stocks and we prefer GSIBs to regionals overall, especially those with more offset from trading and prefer higher quality banks," says brokerage

Says Bank of America BAC.N should be better positioned than peers because of its lower credit risk

Adds Citigroup C.N and Wells Fargo WFC.N have greater credit risk in the medium term than peers

"Citizens Financial CFG.N and Truist TFC.N are also likely to be hurt near-term relatively more than peers due to greater focus on growth from investment banking and wealth management" - brokerage

As of last close, BAC shares down ~4.8% YTD, C up ~2%, WFC up ~2.9%, CFG down ~4.8%, and TFC down 4.2%