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FirstFT: US banks hit record $80 billion in first quarter profits despite turmoil

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The biggest stress since the 2008 financial crisis has not weighed on US bank profits. Reach a record high of about $80 billion in the first quarter.

Ruckus was a major cause of bumper hauling. About half of the increase in industry gross profits was recorded by First Citizens and Flagstar, which bought the remnants of Silicon Valley Bank and Signature Bank, respectively, after being seized by regulators and sold at discounted prices in 2018. It is due to good profit. march.

That said, the surge in profits suggests that U.S. banks across the board are benefiting from higher interest rates, lower loan default rates and a growing job market, even as depositors and investors are nervous. It shows that you are receiving

According to BankRegData, only 197 (less than 5%) of the country’s approximately 4,400 banks lost money in the first quarter.

Below are my two recommendations for the future of the banking sector.

  • Confusion prevention: Situation is stable, but more needs to be done Stop the third stage of bank tremorswrote Mohamed El-Erian.

  • Congress must act: US must restore measures that protected operational business accounts during pandemic to protect small banksformer chairman of the U.S. Federal Deposit Insurance Corporation, Sheila Baer, ​​writes:

And here’s what else I’m monitoring today:

  • NATO meeting: Defense secretaries meet in Brussels to discuss Russia’s war in Ukraine.

  • Google: The tech giant will hold its annual I/O conference in California, where CEO Sundar Pichai will speak.

  • result: ABN Amro, Ahold Delhaize, Alstom, Asos, Compass Group, Continental AG, Crédit Agricole, Disney, Eon, Ferroglobe, The New York Times Company and Tui report.

  • Economic data: The US and Germany have released their consumer price indexes for the last month, and KPMG and REC have released their UK employment figures.

5 more top stories

1. Exclusive: Uber has launched a flight booking app in the UK. Allow your customers to book complete journeys across multiple modes of transportation. Read more about the ride-booking giant’s efforts to become a travel ‘super app’.

2. US President Joe Biden urged Republicans to ‘get rid of the threat of default’ After his first big meeting with congressional leaders on the debt ceiling failed to reach a breakthrough. Here’s what could happen if the US defaults.

3. COP28 has hired a former aide to Boris Johnson who opposed taxing oil and gas companies. The decision to take on right-wing strategist David Kangini, who advised the British prime minister in his final months in office caused concern among environmentalists.

4. Saudi State Group Considers Launching English News Channel It could rival Al Jazeera in Qatar. Read more about the Kingdom’s plans to expand its influence in the global media.

Five. Donald Trump found responsible for journalist’s sexual abuse A Manhattan department store in the 1990s marked a major legal defeat for the former U.S. president in his third bid for the White House. made a judgment. $5 million total damages.

big lead

© Karen Diaz/FT

Russian rough diamond exports will be worth $4 billion in 2021, a mere fraction of crude oil exports. But all available sources of income are important to Moscow’s treasury, as it finances the invasion of Ukraine.This month, G7 officials Aims to sell Russian diamonds in its own country Squeezing Moscow’s access to funds, what they want is to hinder the Kremlin’s ability to wage war.

I am also reading . .

  • Executive Compensation: US chief executives earn a median of $13.4 million, compared to $5.5 million in the UK. move across the pond?

  • War technology: The invasion of Ukraine has accelerated chaos with innovative military technologies such as: Sensors, robotics, unmanned systems.

  • Sudan and China: Conflicts in African countries have hit Beijing’s lending strategy to the continent, putting it at greater risk Loans worth at least $5 billion.

chart of the day

In 1900 Britain had 3.3 million horses for traction, transport and cavalry. Now they are obsolete technology. With the rise of artificial intelligence, Martin Wolf asks: The same fate awaits humans..

stay away from the news

In the rainforests of Central Africa, forest elephants emerge from the jungle and gather in greater numbers than anywhere else on Earth. By David Pilling, Editor of Financial Times Africa, A unique trip to Sanga Lodgejungle sanctuary.

Additional contributions by Gordon Smith and Emily Goldberg

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https://www.ft.com/content/05364acf-ff12-4cb9-b864-577f60802479 FirstFT: US banks hit record $80 billion in first quarter profits despite turmoil

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