The largest US banks did not follow the market situation

JPMorgan Chase, Wells Fargo and Citigroup, which are among the top 5 US banks by assets, published quarterly reports, showing growth in profits and revenues. Banks’ key financials for the first three months of the year exceeded analysts’ forecasts, despite the difficult situation on the market after the bankruptcy of several American regional banks and the collapse of the second largest Swiss bank, Credit Suisse.

JPMorgan Chase, Citigroup and Wells Fargo, ranked first, third and fourth respectively in the top five US banks, are traditionally the first to publish their reports. This year, the market was waiting for their reports with special attention, given that last March was one of the most difficult periods for the banking industry due to the collapse of US Silicon Valley Bank And Signature Bank and Swiss Credit Suisse. Commenting on this situation last week, the head of JPMorgan Chase Jamie Dimon noted that the negative consequences of these events will “be felt for years to come.” Nevertheless, JPMorgan Chase, Citigroup and Wells Fargo’s first quarter earnings were quite positive.

Profit JPMorgan (.pdf) increased by 52% compared to the first quarter of 2022 and amounted to $12.6 billion, or $4.1 per share.

Revenue rose 25% to $38.3 billion, a record high for the bank. Analysts Polled FactSethad forecast revenue of $36.1 billion and earnings of $3.41 per share.

The total volume of deposits in the quarter turned out to be higher than analysts’ forecasts – they reached $2.38 trillion, while analysts expected $2.35 trillion. Net interest income rose by 49% to $20.8 billion. Shares of JPMorgan Chase on the New York Stock Exchange react to the publication of financial statements with growth of 7.5%.

Net profit Citigroup in the first quarter was $4.6 billion (up 7%), or $2.19 per share, on revenue of $21.4 billion (up 12%). At the same time, analysts polled by Refinitiv expected a profit of $4.3 billion and revenue of about $19.99 billion. Citigroup’s net interest income increased by 23% to $13.3 billion. The volume of deposits remained practically unchanged compared to the previous quarter and with the same period in 2022 – $1.33 trillion.

But the investment banking unit’s revenue fell 25% to $774 million amid “geopolitical uncertainty, increased macroeconomic uncertainty and volatility.”

All of these factors caused the global M&A market to drop to its lowest level in more than a decade in the first quarter. Citigroup shares in New York are up nearly 3%.

The fourth largest bank in the United States by assets Wells Fargo reported a 32 percent increase in first-quarter earnings to $4.99 billion, or $1.23 per share (.pdf). Analysts polled by FactSet were expecting earnings per share in the region of $1.13. The bank’s revenue grew by 17% to $20.73 billion, which also exceeded analysts’ forecasts. Net interest income soared by 45% to $13.3 billion. At the same time, non-interest income fell by 13% to $7.4 billion. Total deposits also decreased by 8% compared to the first quarter of 2022 and amounted to $1.36 trillion Wells Fargo stock rose 3% in OTC trades and then began to fall during trading, now they are losing about 1%.

Alena Miklashevskaya