The Strategist

Profit of JPMorgan Chase, Wells Fargo and Citigroup grows in Q3

10/16/2023 - 03:43

Three major American banks, JPMorgan Chase, Wells Fargo, and Citigroup, saw a considerable increase in profit during the quarter. Analysts say this shows that big banks and the US economy as a whole remain stable even in the face of macroeconomic volatility.

JPMorgan Chase, Wells Fargo, and Citigroup, three significant US banks, released their third-quarter financial statements. The banks showed revenue and earnings growth at the end of the quarter, with Wells Fargo and JPMorgan Chase reporting very robust gains.

Quarterly results are regarded as proof that American banks, at least the larger ones, survived the first half of the year's crisis, which saw the bankruptcy of several regional banks, including First Republic Bank, Silicon Valley Bank, and Signature Bank (which was taken over by JPMorgan).

Chief investment officer at Crestwood Advisors John Ingram says that these bank results also show that the overall U.S. economy is still strong. At the same time, the banks themselves issued a warning about potential future economic challenges.

The Fed's main rate boost is the main reason for the growth in the earnings because the amounts that large banks receive from interest are significantly larger than what they pay to deposit holders.