US Banks Thrive on Higher Interest Rates and Impressive Earnings.
US banking giants JPMorgan Chase, Citigroup, and Wells Fargo reported strong Q1 2023 earnings, beating Wall Street expectations, thanks to higher interest payments. However, all three banks made provisions for potential loan losses as the economic outlook dims. JPMorgan CEO Jamie Dimon warned that the recent banking crisis could make lenders more conservative and hurt consumer spending. Citigroup CEO Jane Fraser said the bank was prepared for a mild recession in the US. Investment banking proved harder for the big banks to profit in 2023, with JPMorgan's business seeing a 24% fall in revenue at the unit as dealmaking dries up.