The profits of American banks soar but fears remain for small institutions

NEW YORK. The full profits recorded yesterday morning on Wall Street brings a remnant of serenity to the American banking system, although it has not managed to make purchases prevail on the financial markets weakened by retail sales. Jp Morgan (+7% on the Nyse) closes the first quarter with revenues at record levels, +25% to 39.34 billion dollars, above analysts’ expectations. Earnings increased 52% to $12.62 billion, or $4.10 per share. Deposits have jumped $37 billion since December and the bank has set aside $1.1 billion for potential loan losses. Pronounced growth in revenues and profits also for Wells Fargo (-0.20% on the Nyse) in the first quarter. Revenue climbed 17% to $20.73 billion, above analyst expectations. Profit, on the other hand, marked a 32% increase to $5 billion, or $1.23 per share. The bank boosted its reserves to cover potential loan losses by $643 million. Capital and liquidity levels remain “solid”.

This is encouraging data because it represents the first bank gains since the collapse of Silicon Valley Bank and Signature Bank. Less brilliant was the performance of BlackRock, whose assets under management rose to 9,100 billion dollars in the first quarter but net income dropped by 19% compared to the same period last year to 1.1 billion. Revenue fell 10% to $4.2 billion. “I believe the crisis of confidence in the regional banking sector will further accelerate the growth of capital markets and BlackRock will play a central role,” says CEO Larry Fink nonetheless. Despite the banking acceleration, US stocks recorded declines even though the Dow Jones closed the fourth consecutive week of gains, due to the government report on retail sales. The data demonstrates how consumer spending fell by double compared to expectations last month, -1% against the -0.5% expected, a decline – it must be said – partly due to the fact that consumers paid less for fuel .