[ad_1]
NEW DELHI: Despite a global banking crisis, several US lenders on Friday reported better-than-expected Q1 earnings, esceeding investor expectations.
Banks like JPMorgan Chase, Wells Fargo, Citigroup and PNC Financial surpassed earnings expectations after the failures of smaller banks alarmed the sector.
The jump in first quarter profits come as a reassuring sign for the reeling banking industry which has suffered heavy losses since the collapse of the Silicon Valley Bank earlier this year.
Here’s a lowdown on the Q1 results of the top US banks …
* JPMorgan Chase & Co posted a 52% jump in its first quarter profits, helped by higher interest rates, which allowed the bank to charge customers more for loans.
* The bank saw deposits grow noticeably, as business and customers flocked to the banking titan after the failure of Silicon Valley Bank and Signature Bank.
* Wells Fargo & Co also beat profit expectations for the first quarter as the lender earned more from higher interest rates, while executives said the US economy is strong but expected to slow in response to tighter monetary policy.
* The bank set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier.
* The bank’s shares were up 4.14% in premarket trading. Net-interest income surged 45% to $13.34 billion.
* Citigroup too posted a surprise jump in first-quarter profit after its fixed-income traders delivered a windfall large enough to cover the rising cost of the bank’s souring loans.
* Revenue from fixed-income, currencies and commodities trading unexpectedly rose 4% to $4.5 billion in the first quarter, as clients reacted to changing interest rates, the bank said. That helped defy analyst predictions of a drop in profits.
* Net income rose 7% in the quarter to $4.6 billion. On an adjusted basis, per share profits amounted to $1.86.
* PNC Financial Services Group reported an 18.5% rise in first-quarter profit on Friday, as the Federal Reserve’s rate hikes fueled a surge in the U.S. regional lender’s net interest income (NII).
* Shares of PNC were up nearly 3% in premarket trading after upbeat results. They fell about 20% last quarter, which was marred by two of the biggest bank failures in U.S. history, after liquidity concerns at Silicon Valley Bank sparked a bank run.
(With inputs from agencies)
Banks like JPMorgan Chase, Wells Fargo, Citigroup and PNC Financial surpassed earnings expectations after the failures of smaller banks alarmed the sector.
The jump in first quarter profits come as a reassuring sign for the reeling banking industry which has suffered heavy losses since the collapse of the Silicon Valley Bank earlier this year.
Here’s a lowdown on the Q1 results of the top US banks …
* JPMorgan Chase & Co posted a 52% jump in its first quarter profits, helped by higher interest rates, which allowed the bank to charge customers more for loans.
* The bank saw deposits grow noticeably, as business and customers flocked to the banking titan after the failure of Silicon Valley Bank and Signature Bank.
* Wells Fargo & Co also beat profit expectations for the first quarter as the lender earned more from higher interest rates, while executives said the US economy is strong but expected to slow in response to tighter monetary policy.
* The bank set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier.
* The bank’s shares were up 4.14% in premarket trading. Net-interest income surged 45% to $13.34 billion.
* Citigroup too posted a surprise jump in first-quarter profit after its fixed-income traders delivered a windfall large enough to cover the rising cost of the bank’s souring loans.
* Revenue from fixed-income, currencies and commodities trading unexpectedly rose 4% to $4.5 billion in the first quarter, as clients reacted to changing interest rates, the bank said. That helped defy analyst predictions of a drop in profits.
* Net income rose 7% in the quarter to $4.6 billion. On an adjusted basis, per share profits amounted to $1.86.
* PNC Financial Services Group reported an 18.5% rise in first-quarter profit on Friday, as the Federal Reserve’s rate hikes fueled a surge in the U.S. regional lender’s net interest income (NII).
* Shares of PNC were up nearly 3% in premarket trading after upbeat results. They fell about 20% last quarter, which was marred by two of the biggest bank failures in U.S. history, after liquidity concerns at Silicon Valley Bank sparked a bank run.
(With inputs from agencies)
#Top #banks #post #strong #profits #global #turmoil
