Big Bank Bucks – The Banking Earnings 🏦

Big Bank Bucks – The Banking Earnings

The banking crisis exposed a lot of flaws in our economy, and made us realize that confidence is truly what holds our financial system together. When customers started to lose confidence in the banking sector, it was a domino effect as SVB collapsed along with Signature Bank, and large institutions like Credit Suisse needed saving. Likely being the largest economic event in the first quarter of 2023, investors were curious as to how this would affect future economic data, and we got our first taste on Friday.

The big banks of America reported their quarterly results to kick off what is going to be a vital earnings season for investors, and it was a delightful surprise. JPMorgan’s profit of $12.6 billion crushed expectations, with their CEO Jamie Dimon being one of the key figures in the latest banking fiasco. Citigroup reported an impressive $4.6 billion profit with revenue increasing by 12 percent, and Wells Fargo followed suit. The big picture showed that the issues regarding the regional banks did not spread throughout the banking industry as rising interest rates continued to benefit the big banks, but more importantly it signifies a change in consumer sentiment towards the banks. Before the SVB collapse, customers were becoming attracted to regional banks due to low rate deposits and higher rates of lending, along with how they were making the sector equitable by providing banking to smaller customers. Now, confidence in regional banks is at a major low, and there has been increased trust in big banks to keep money safe, showing that the crisis might have actually helped these companies. Earnings season got off to a good start, but now the broader economy will be seen with the largest companies providing us with their quarterly results. 

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
OPEC’s Decision 🛢
1 December, 2023

OPEC leaders just hosted an important late-November meeting that may signal a change in strategy.

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.