US banks quarterly figures: record profit from JP Morgan, Bank of America profit shrunk, Citigroup with a loss

US banks quarterly figures: record profit from JP Morgan, Bank of America profit shrunk, Citigroup with a loss

According to a report by www.tagesschau.de,

The reporting season for the largest US banks has begun and the quarterly figures from JPMorgan, Wells Fargo, Bank of America and Citigroup have been published. It became clear that the financial institutions have recently suffered primarily from the high payments to the deposit protection fund.

JP Morgan posted a record profit of $49.6 billion for the full year of 2023, largely thanks to high interest rates in the United States. For 2024, JP Morgan expects profits to rise further to around $90 billion.

Bank of America, on the other hand, saw charges from deposit insurance fund payments in the fourth quarter, resulting in a contraction in net income of $3.1 billion.

The third-largest U.S. bank, Citigroup, reported a quarterly loss of $1.8 billion, largely due to restructuring costs and its withdrawal from Russia.

Wells Fargo, on the other hand, was able to record a nine percent increase in profits and report a net profit of $3.45 billion despite charges for payments into the deposit insurance fund.

The high payments to the deposit insurance fund have meant that some large US banks are under significant pressure and their profits are being affected. The quarterly figures reflect that banks are likely to continue to face charges from the deposit protection fund, which could have a negative impact on their profits. The different responses of individual banks to these challenges show that the impact can vary depending on their business structure and strategy. The factors mentioned can therefore also have an impact on the overall market and the financial industry.