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Bank Earnings:Historical Results/2023 Q1: Difference between revisions
Bank Earnings:Historical Results/2023 Q1 (view source)
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== Summary of key insights == | |||
{| class="wikitable" | |||
| | |||
|Q1 2023 | |||
| | |||
|Q1 2022 | |||
| | |||
|Q1 2023 | |||
| | |||
|- | |||
| | |||
|Provision for Credit Losses(in $ billion) | |||
|Net charge-offs(in $billion) | |||
|Provision for Credit Losses(in $ billion) | |||
|Net charge-offs(in $ billion) | |||
|Deposits Growth | |||
|Loans Growth | |||
|- | |||
|JP morgan | |||
|2.3 | |||
|0.9 | |||
|1.5 | |||
|0.5 | |||
| -8% | |||
|6% | |||
|- | |||
|Citi Group | |||
|1.9 | |||
|1.3 | |||
|0.8 | |||
|0.9 | |||
|0% | |||
| -1% | |||
|- | |||
|Wells Fargo | |||
|1.2 | |||
|0.6 | |||
| -0.8 | |||
|0.3 | |||
| -8% | |||
|6% | |||
|- | |||
|Bank of America | |||
|0.9 | |||
|0.8 | |||
|0.03 | |||
|0.4 | |||
| -3% | |||
|7% | |||
|- | |||
|Goldman Sachs | |||
|0.3 | |||
|0.3 | |||
|0.2 | |||
|0.2 | |||
| -3% | |||
|7% | |||
|- | |||
|Morgan Stanley | |||
|0.2 | |||
|0.07 | |||
|0.06 | |||
|0.01 | |||
| -4% | |||
|7% | |||
|- | |||
|Total | |||
|6.8 | |||
|3.97 | |||
|1.79 | |||
|2.31 | |||
| | |||
| | |||
|- | |||
|Y/Y Growth | |||
|280% | |||
|72% | |||
| | |||
| | |||
| -4% | |||
|5% | |||
|} | |||
The six major US banks toppped revenue estimates provided by analysts. Similarly, all of them except Goldman Sachs saw their earnings come above analysts estimates. This indicates that the health of the banking sector is still strong. However, the banks saw their average consumer debt write offs rise by 72% year-on-year to $3.97 billion. Also, their average provisions for credit losses rose by 280% year-on-year to around $6.8 billion. But the banks heads were adamant to point out that a credit crisis is on the offing. | |||
Despite being large banks, they were not immune to recent banking turmoil as their deposits fell by an average of 4% year-on-year during the quarter. However, credit tightening was not observed during the period as loans grew by an average of 5%. However, the bank heads did not brush off the possibility of credit tightening in the near future. | |||
== References == | == References == | ||