Some of the largest U.S. lenders reported Banner’s first-quarter earnings on Friday, far exceeding investors’ expectations, despite a recession in the banking industry.
JPMorgan Chase, the nation’s largest bank, posted earnings growth across the board, up 52% from the year-ago quarter to $12.6 billion. This reflects rising interest rates, generally considered good news for the industry, and the impact of last month’s Silicon Valley and Signature bank failures appearing to have strengthened the big banks.
JP Morgan’s customer deposits increased slightly in the first quarter from the previous quarter compared with some smaller competitors that saw depositors withdraw cash en masse.
“Banks are in a different situation than they were in 2008, with far fewer financiers and fewer problems to solve, but financial conditions are likely to tighten as lenders become more conservative. We don’t know if this will slow consumer spending.” Jamie Dimon, Chief Executive Officer of JP Morgan played a leading role By bailing out smaller lenders, it said in a statement.
Wells Fargo also beat analyst expectations, with first quarter earnings up 32% year over year to nearly $5 billion. Rising interest rates, driven by growth in personal lending and credit card balances, boosted bank earnings as loan portfolios expanded.
There was little sign that nervous depositors would flee to secure the bank, the fourth largest bank in the United States. Wells Fargo deposits decreased $24 billion, or 2%, from the prior quarter.
Chief Executive Officer Charlie Scharf said Wells Fargo was “glad to be in a strong position to support the U.S. financial system” amid recent industry turmoil. Banks’ top priority remains to improve internal controls, he said. Banks have been hit by regulators for years and have paid billions of dollars in fines for various fraudulent activities.
PNC Financial, the country’s sixth largest bank, says industry volatility has played to its strengths. Caught in the turmoil surrounding midsize banks, so-called super-regional lenders PNC are larger and more diversified than their smaller rivals. PNC played a savior in last month’s bailout plan for his ailing First Republic Bank, putting $1 billion into the bank as part of his $30 billion deal orchestrated by Dimon. .
PNC deposits increased slightly last quarter, but were down from a year ago as net income increased 9% to $1.7 billion. Earnings fell 3% to $5.6 billion, which the bank attributed in part to higher funding costs.
“The banking system is very healthy. I have.”
But Federal Reserve staff predicted that general bank turmoil would spur a recession later this year. According to the minutes of last month’s meeting of policymakers,The minutes stated, “Given an assessment of the potential economic impact of recent banking sector developments, the staff’s projections at the March meeting included a mild recession beginning later this year, followed by a It included two years of recovery.”
