The largest banks in the country reported robust profits for the last year, buoyed by higher interest rates and a strong economy, despite grappling with the ongoing industry fallout from last year’s banking crisis, which led to the collapse of Silicon Valley Bank and Signature Bank.
While all the banks faced one-time charges in their quarterly results, many related to their own business challenges, the overall trend for 2023 was positive. The banks benefited from a resilient job market, U.S. consumers who continued spending despite inflation, and higher interest rates that boosted revenue across the industry.
JPMorgan Chase, for instance, saw its profits dip 15% in the fourth quarter due to a one-time special assessment by the Federal Deposit Insurance Corp. related to the collapse of Silicon Valley Bank. However, the bank reported a record quarterly revenue and an impressive $50 billion in profits for the year, up from $37.6 billion in 2022.
Citigroup, dealing with geopolitical turmoil and a companywide restructuring, posted a fourth-quarter loss due to the FDIC’s assessment and other charges. The bank announced plans to cut 20,000 jobs, approximately 10% of its workforce, as part of its ongoing efforts to wind down, restructure, or sell off various businesses.
Bank of America also saw profits fall by 50% from the previous year, impacted by the FDIC assessment and other one-time charges. Despite a challenging year, bank executives expressed optimism about consumer strength, emphasizing that consumers still have significant spending capacity.
Wells Fargo emerged as a bright spot, earning $3.45 billion for the quarter, meeting analysts’ targets, and experiencing an 11% increase in revenue for the full year. The bank’s positive results were boosted by a 16% increase in net interest income.
In a separate development, a Wells Fargo bank branch in Daytona Beach, Florida, voted to unionize, following a similar vote in a New Mexico branch in December.
