The 4 largest banks in the USA achieved 45 percent of industry profits.
The four largest US banks are capturing a growing share of industry profits. While 45 percent of the total profit of the banking sector is obtained by the big four, the increase in this rate is remarkable.The 4 largest banks in the USA achieved 45 percent of sector profits.
The four largest US banks earned nearly half of all banking profits in the third quarter.45 percent of the total profit of the banking sector, which consists of a total of 4,400 banks in the USA, was obtained by the big four. This rate was well above last year's 35 percent and the 10-year average rate of 39 percent.Profits at JPMorgan Chase, Bank of America, Wells Fargo and Citigroup rose 23 percent, according to BankRegData, which compiles the banks' quarterly balance sheets.In contrast, profits at all other banks fell by an average of 19 percent this quarter, the biggest drop since the early months of Covid-19.THE BIG 4 DISTRIBUTED POSITIVELY FROM THE SECTOR
Overall, banking sector profits fell 5 percent in the third quarter. According to BankRegData, losses in loans and bond market investments, as well as a 260 percent increase in interest costs, contributed to the decline in banks' profits.The decline in profits was the first decline in the sector's total earnings in the last 6 quarters.However, while profits fell across the industry, the four largest US banks, each with more than $1 trillion in assets, saw their profitability as a group rise 23 percent from the same period a year ago.“It's not a terrible quarter, but earnings will continue to struggle,” said Christopher Whalen, banking analyst and president of Whalen Global Advisors, regarding the industry-wide picture.WHAT IS THE REASON FOR THE GAP?
The biggest reason for the gap between the overall picture in the banking sector and the profits of JPMorgan Chase, Bank of America, Wells Fargo and Citigroup is explained as the fact that large banks are safer due to their technological advantages or size and do not have to pay too much to keep their depositors. .
The big four banks were paying less than 2 percent annually on term deposits in the third quarter. This rate was 3 percent on average for regional banks. What's more, more than 40 percent of deposit accounts at the nation's four largest banks pay no interest at all. This rate is 30 percent across the sector.
The four largest US banks are capturing a growing share of industry profits. While 45 percent of the total profit of the banking sector is obtained by the big four, the increase in this rate is remarkable.The 4 largest banks in the USA achieved 45 percent of sector profits.
The four largest US banks earned nearly half of all banking profits in the third quarter.45 percent of the total profit of the banking sector, which consists of a total of 4,400 banks in the USA, was obtained by the big four. This rate was well above last year's 35 percent and the 10-year average rate of 39 percent.Profits at JPMorgan Chase, Bank of America, Wells Fargo and Citigroup rose 23 percent, according to BankRegData, which compiles the banks' quarterly balance sheets.In contrast, profits at all other banks fell by an average of 19 percent this quarter, the biggest drop since the early months of Covid-19.THE BIG 4 DISTRIBUTED POSITIVELY FROM THE SECTOR
Overall, banking sector profits fell 5 percent in the third quarter. According to BankRegData, losses in loans and bond market investments, as well as a 260 percent increase in interest costs, contributed to the decline in banks' profits.The decline in profits was the first decline in the sector's total earnings in the last 6 quarters.However, while profits fell across the industry, the four largest US banks, each with more than $1 trillion in assets, saw their profitability as a group rise 23 percent from the same period a year ago.“It's not a terrible quarter, but earnings will continue to struggle,” said Christopher Whalen, banking analyst and president of Whalen Global Advisors, regarding the industry-wide picture.WHAT IS THE REASON FOR THE GAP?
The biggest reason for the gap between the overall picture in the banking sector and the profits of JPMorgan Chase, Bank of America, Wells Fargo and Citigroup is explained as the fact that large banks are safer due to their technological advantages or size and do not have to pay too much to keep their depositors. .
The big four banks were paying less than 2 percent annually on term deposits in the third quarter. This rate was 3 percent on average for regional banks. What's more, more than 40 percent of deposit accounts at the nation's four largest banks pay no interest at all. This rate is 30 percent across the sector.
