In the past, many banks, including Silicon Valley Bank (SVB), and Signature Bank, had failed in America. Concerned about the bank’s financial condition, depositors started queuing up to withdraw their money. However, the US government has said that the government is committed to taking all necessary steps to protect depositors’ deposits and the banking system. At the same time, despite difficult times for the banking industry, some big US banks reported profits in the first quarter on Friday. It easily exceeded investors’ expectations.
According to a New York Times report, America’s largest bank JP Morgan Chase (JP Morgan), reported an increase in revenue. The bank has gained $ 12.6 billion. This was a jump of 52 per cent from the same quarter a year ago. This is considered good news for the banking industry in America. Big banks have benefited from the failure of Silicon Valley Bank and Signature Bank.
Deposits of JP Morgan customers increased slightly in the first quarter compared to the previous quarter, while depositors at some smaller banks continued to withdraw funds. JPMorgan chief executive Jamie Dimon, who played a leading role in bailing out smaller lenders, said the banking situation is different from 2008 because there are far fewer financial players involved and fewer issues that need to be resolved.
Wells Fargo, America’s fourth-largest bank, also beat analysts’ expectations and reported a first-quarter profit of nearly $5 billion, up 32 per cent from a year ago. Rising interest rates boosted the bank’s earnings as its loan portfolio grew. Increased personal lending and higher credit-card balances. However, the bank deposits decreased by 24 billion or 2 per cent from the previous quarter.
PNC Financial’s Resilience in a Volatile Banking Industry
The country’s sixth-largest bank, PNC Financial, said that the industry’s volatility played with its strength. PNC played a key role in last month’s rescue plan for the troubled First Republic Bank. PNC deposits grew slightly last quarter but were lower than a year ago. Its net income increased by 9 per cent to $ 1.7 billion. Its revenue fell 3 per cent to $ 5.6 billion. For this, the bank attributed the higher funding cost.