Source: Bloomberg

Author: Max Reyes

Although the three banks have closed down and multiple giants in the industry jointly assist in another bankruptcy bank, the performance of Wall Street in the past quarter has successfully achieved growth and has not shown any signs of tension.The following is the five major points of the first quarter financial report:

Interest rate

The rise in interest rates is conducive to boosting loan business, and the Fed's interest rate hike continues to benefit several largest banks in Wall Street.The net interest income of Morgan Chase's first quarter of fiscal quarterly increased by 49%. The bank's expectations for this year's revenue was increased from US $ 73 billion (S $ 97.3 billion) to $ 81 billion in January.The net interest income of Wells Fargo and Citi rose 45%and 23%year -on -year, respectively.

Last month, the turbulent interest rate trend of the US -regional bank was also brought opportunities to Wall Street traders.The fixed income trading department of Citi Group has achieved one of the best performance in ten years. Bank of China ’s solid income, currency and commodity business (FICC) unexpected profits of 3.4 billion U.S. dollars, also reached the highest ten years, and helped the bank's overall profit exceeding more than more than more than more than ten years.Expected level.

deposit viscosity

The surge in customers' withdrawals caused the closure of Silicon Valley Bank, SIGNATURE Bank, Silvergate Capital Corp., and even the first trust bank (FIRST Republic Bank) became precarious.alert.

Shortly after the turbulence of the banking industry, JPMorgan Chase saw about $ 50 billion in funds, but the chief financial officer Jeremy Barnum pointed out that new deposits may be a bit unstable.

Mark Mason CEO of Citi Group said that from March 7 to the end of the month of the month, the scale of funds inflow was slightly less than $ 30 billion.He believes that the inflow of funds from medium -sized enterprises may have "viscosity" when the turbulence of the banking industry may be "sticky."

Bank of America refuses to disclose specific figures.The bank said that starting from March 10, the deposit of check accounts has been increasing and it has continued to rise.Bloomberg reported earlier that when the crisis broke out seriously, Bank of America attracted a total of $ 15 billion in deposits, and the storage households who were afraid of the spread of the financial crisis all transferred funds to banks they thought "too big".

Large banks have to increase savings interest rates in order to retain deposits to curb the flow of funds to a higher rate of return, such as currency market funds.Wells -founded bank deposits decreased by 2%in quarter and a year -on -year decrease of 8%.The bank said its average deposit interest rate has 80 basis points higher than the same period last year.

Wild credit

The high inflation that has been encountered for decades has eroded Americans' savings, and there are more and more repayments.

JP Morgan Chase, Bank of America, Citi Group, and Wells Fargo in the first three months of this year, a total of 3.4 billion U.S. dollars in non -performing loans, an increase of 73%year -on -year.Coupled with the additional reserve, the four banks' dial -up reservations reached the highest level since the outbreak of the epidemic.

Citi Group has doubled loan loss reserve to more than $ 2 billion. The bank said that the credit card business is expected to return to normal later and early next year.Wells Wells Bank has added $ 643 million in credit loss reserve, of which commercial real estate and office loans are the main driving forces for growth.

JPMorgan Chase said that its credit loss reserve reflects the "net sales account for $ 1.1 billion and a $ 1.1 billion net increase reserve".However, the executives of the bank said they would not take fierce response.As investors are becoming more and more worried about the increase in loan losses in office buildings, Morgan Chase focuses on fine -tuning real estate investment portfolios.

"I will not use the word of credit tightening," said CEO Jimi Dimon."Obviously, there will be a little tightening, and most of them are related to certain real estate issues."

The platform solution department, including credit card business, has soared to $ 265 million in this quarter.This Wall Street giant blame this part on the increase in net sales of credit card business.

Economic Outlook

Although the bad debt is added, bank executives faded their concerns about the approaching credit crisis.

"We haven't seen any cracks in the investment portfolio," said Alastair BorthWick, chief financial officer of the United States."The consumer is in good condition."

Dimon said that consumers with good financial situations are still healthy in general, and consumers with good financial conditions are still spending, and their corporate conditions are good.In the end, he used the weather metaphor he liked to describe the macroeconomic uncertainty.

"In the past year, we have been monitoring Wuyun's Wuyun, and the turbulence of the banking industry has exacerbated these risks," he added that the United States will eventually fall into a decline.

"We continue to be cautious about economic prospects," said Goldman Sachs CEO David Solomon that Goldman Sachs has been fully prepared for the economy.

First Trust Bank

Although some people have hinted that the crisis is the worst, James Gorman, CEO of Morgan Stanley, emphasized that the regional banking crisis is significantly different from 2008 and is not comparable.

Large banks have participated in the rescue of the First Trust Bank, and jointly deposited $ 30 billion in the bank.The executives of these banks proudly declared how hard they worked hard to help support this dilemma.

Charlie Scharf, CEO of Wells Wells, said, "In the recent incident that affects the banking industry, we are glad to help support the US financial system,"

His banks have invested $ 5 billion for this. Each of the banks participating in the operation will deposit funds at the First Trust Bank for at least 120 days.

"All of us are doing right," Dimeng said at the financial report conference call.