US banking goliaths report bumper profits amid turmoil, beat estimates

Despite tenuous times for the banking industry, some of the largest US lenders reported banner first-quarter earnings on Friday that easily exceeded investor expectations. And even as they warned that credit could become more scarce and expensive, they said that the economy was proving resilient so far.

The banks’ earnings were bolstered by higher interest rates, which allowed them to charge more for loans above what they pay out on deposits. The robust reports were also a reflection that the collapse of Silicon Valley Bank and Signature Bank last month appear to have strengthened the biggest banks by driving customers toward larger institutions perceived to be more stable. JPMorgan Chase, the nation’s largest bank, reported revenue that rose virtually across the board, helping it pull in $12.6 billion in profit, a 52 percent jump from the same quarter a year earlier. Its customer deposits rose slightly in the first quarter from the previous quarter, with inflows picking up in particular after smaller competitors saw depositors pull cash en masse, the bank said.“We had a rough spell in March, but things are looking better now,” said JPMorgan’s chief financial officer, Jeremy Barnum. 

Citigroup, the country’s third-largest lender, reported a profit of $4.6 billion in the first quarter, up 7 percent from the same period last year and well ahead of forecasts. Revenue jumped 12 percent from the previous year, which came “despite the tumultuous environment for banks,” Jane Fraser, the bank’s chief executive, said in a statement. The bank’sdeposits fell 3 percent from the previous quarter.

Wells Fargo also surpassed analysts’ expectations, reporting a profit of nearly $5 billion in the first quarter, a 32 percent increase from a year ago. Rising interest rates lifted the bank’s earnings as its loan portfolio grew, led by gains in personal lending and higher credit-card balances.'

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