Index Investing News
Sunday, May 25, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

FirstFT: US banks make record $80bn in first-quarter profits despite turmoil

by Index Investing News
May 10, 2023
in Economy
Reading Time: 8 mins read
A A
0
Home Economy
Share on FacebookShare on Twitter


Good morning. This article is an on-site version of our FirstFT newsletter. Sign up to our Asia, Europe/Africa or Americas edition to get it sent straight to your inbox every weekday morning

The most significant stress since the 2008 financial crisis did not damp US banking profits, which climbed 33 per cent from a year ago to reach an all-time high of roughly $80bn in the first quarter.

The turmoil was in large part responsible for the bumper haul. About half of the increase in the industry’s aggregate profits came from one-time gains recorded by First Citizens and Flagstar, which bought the remnants of Silicon Valley Bank and Signature Bank, respectively, after they were seized by regulators and sold off at a discount in March.

Even so, the jump in profits also showed US banks in general benefited from rising interest rates, low loan defaults and an expanding job market despite nervousness among depositors and investors.

Of the nation’s nearly 4,400 banks, just 197 — or less than 5 per cent — made losses in the first quarter, according to BankRegData, which collates quarterly reports made by lenders to the Federal Deposit Insurance Corporation.

Here are two opinion pieces I recommend on what comes next for the banking sector.

  • Preventing turmoil: While conditions have stabilised, more must be done to stop a third phase of bank tremors, writes Mohamed El-Erian.

  • Congress must act: The US needs to reinstate measures that shielded operational business accounts during the pandemic to protect smaller banks, writes Sheila Bair, former chair of the US Federal Deposit Insurance Corporation.

And here’s what else I’m keeping tabs on today:

  • Nato meeting: Defence chiefs meet in Brussels to discuss Russia’s war in Ukraine.

  • Google: The tech giant holds its annual I/O conference in California, where chief executive Sundar Pichai is due to speak.

  • Results: 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 consumer price indices for last month, while KPMG and REC release their jobs report for the UK.

Five more top stories

1. Exclusive: Uber has launched flight bookings in its UK app, allowing customers to book a complete journey across multiple forms of transport. Read more on the ride-booking giant’s push to become a travel “super app”.

2. US president Joe Biden has urged Republicans to “take the threat of default off the table” after his first big meeting with congressional leaders on the debt ceiling failed to reach a breakthrough. Party leaders are due to meet Biden again on Friday. Here’s what could happen if the US defaults on its debt.

3. COP28 has hired a former aide to Boris Johnson who opposed a tax on oil and gas companies. The decision to take on rightwing strategist David Canzini, who advised the UK prime minister in his last few months in office, has prompted concern among environmentalists.

4. A Saudi Arabia state-backed group is looking at launching an English-language news channel that could rival Qatar’s Al Jazeera. Read more on the kingdom’s plans to expand its global media influence.

5. Donald Trump has been found liable for the sexual abuse of a journalist in a Manhattan department store in the 1990s, in a significant legal defeat for the former US president as he mounts a third bid for the White House. The jury awarded plaintiff E Jean Carroll, a former advice columnist and TV presenter, a total of $5mn in damages.

The Big Read

© Karen Dias/FT

Russia’s rough diamond exports were worth $4bn in 2021, only a fraction of its crude oil exports. But every available revenue source is important to Moscow’s treasury as it bankrolls its invasion of Ukraine. This month, G7 officials are expected to target the sale of Russian diamonds in their nations in a bid to squeeze Moscow’s access to finance and — they hope — impede the Kremlin’s ability to wage war.

We’re also reading . . . 

  • Executive pay: With chief executives in the US making a median $13.4mn compared with $5.5mn in the UK, does it pay for British executives to move across the pond?

  • War tech: The invasion of Ukraine has sped up disruption from innovative military technologies such as sensors, robotics and unmanned systems.

  • Sudan and China: The African nation’s conflict has dealt a blow to Beijing’s lending strategy with the continent, putting at further risk loans worth at least $5bn.

Chart of the day

In 1900, the UK had 3.3mn horses to provide pulling power, transport and cavalry. Now, they are an outmoded technology. With the rise of artificial intelligence, Martin Wolf asks if the same fate awaits humans.

You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.


Take a break from the news

In the central African rainforest, forest elephants emerge from the jungle to congregate in greater numbers than anywhere else on earth. Don’t miss Financial Times Africa editor David Pilling’s reflection on a one-of-a-kind journey to Sangha Lodge, a jungle sanctuary.

Additional contributions by Gordon Smith and Emily Goldberg

Recommended newsletters for you

Asset Management — Find out the inside story of the movers and shakers behind a multitrillion-dollar industry. Sign up here

The Week Ahead — Start every week with a preview of what’s on the agenda. Sign up here

Thank you for reading and remember you can add FirstFT to myFT. You can also elect to receive a FirstFT push notification every morning on the app. Send your recommendations and feedback to [email protected]



Source link

Tags: 80bnbanksFirstFTfirstquarterprofitsrecordturmoil
ShareTweetShareShare
Previous Post

Karnataka elections: A four-time jump in seizures than 2018 polls, include ‘freebies’ like sarees

Next Post

Westminster Dog Show Highlights: Buddy Holly Wins Best in Show

Related Posts

SoftBank’s Masayoshi Son floats thought of US-Japan sovereign wealth fund

SoftBank’s Masayoshi Son floats thought of US-Japan sovereign wealth fund

by Index Investing News
May 25, 2025
0

Unlock the White Home Watch e-newsletter without costYour information to what Trump’s second time period means for Washington, enterprise and...

Donald Trump makes dangerous guess by rekindling his commerce conflict with the EU

Donald Trump makes dangerous guess by rekindling his commerce conflict with the EU

by Index Investing News
May 24, 2025
0

Donald Trump likes to make offers. And he could also be calculating that his sudden escalation of tariffs on the...

The Fed’s not making a revenue

The Fed’s not making a revenue

by Index Investing News
May 24, 2025
0

Unlock the Editor’s Digest free of chargeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.The...

Trump’s subsequent 100 days

Trump’s subsequent 100 days

by Index Investing News
May 24, 2025
0

This week, Swamp Notes goes to London for a dwell recording. Katie Martin, host of the Unhedged podcast, and Chris...

Greenback notches greatest weekly drop since tariffs sell-off over US debt fears

Greenback notches greatest weekly drop since tariffs sell-off over US debt fears

by Index Investing News
May 24, 2025
0

Unlock the Editor’s Digest totally freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.Investor jitters...

Next Post
Westminster Dog Show Highlights: Buddy Holly Wins Best in Show

Westminster Dog Show Highlights: Buddy Holly Wins Best in Show

EV maker Faraday Future to raise 0 million in debt to support delivery plans By Reuters

EV maker Faraday Future to raise $100 million in debt to support delivery plans By Reuters

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

‘Post Ethereum Merge Crypto Flows Indicate Continued Caution among Investors’

‘Post Ethereum Merge Crypto Flows Indicate Continued Caution among Investors’

September 20, 2022
How to Avoid Financial Disasters

How to Avoid Financial Disasters

January 26, 2023
The 3 Steps to Start Building Wealth with Real Estate in 2024

The 3 Steps to Start Building Wealth with Real Estate in 2024

January 10, 2024
Name of justice: India ought to reform its course of for the elimination of judges

Name of justice: India ought to reform its course of for the elimination of judges

April 8, 2025
Tory Burch Just Put Hundreds of New Spring Styles On Sale: Shop The Best Designer Deals Up to 50% Off

Tory Burch Just Put Hundreds of New Spring Styles On Sale: Shop The Best Designer Deals Up to 50% Off

February 16, 2023
Former NFL RB Larry Johnson offers awful Damar Hamlin take

Former NFL RB Larry Johnson offers awful Damar Hamlin take

January 11, 2023
Irish priest insists deputy PM will go to hell — RT World News

Irish priest insists deputy PM will go to hell — RT World News

November 3, 2022
Racing League: Yarmouth, Chepstow and Wolverhampton added as venues for 2023 as regional competition branches out | Racing News

Racing League: Yarmouth, Chepstow and Wolverhampton added as venues for 2023 as regional competition branches out | Racing News

December 16, 2022
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In