Did you know just 33 banks, out of thousands, control over 70% of the U.S. banking industry? Talk about the ultimate power club! 💰
In Q1, 2023, the “Big Four” held 39% of all assets, while the next tier of banks held another 18%. Together, that’s 57% of assets. Want to hit 70%? Add just 19 more banks!
Net income soared by $23B YoY in Q1 2023, largely due to surging interest income and burgeoning non-interest (fee) income.
However, challenges lurk. Credit losses are slowly ticking up and non-interest expense growth continues. Though, not enough to destabilize profits…yet.
Non-interest expense is also on the rise, but only by 10% YoY, 5% for the quarter.
Despite this, assets grew from $23T to $ 23.3 T. Deposit growth was slow but steady.
The U.S. banking sector exhibits robust growth and profitability, though challenges emerge.
This concentrated power within a select few banks poses an intriguing question: How will these dynamics affect your financial landscape?
Insightful exploration today leads to smarter decisions tomorrow. Stay informed!
Digging deep on banks is what I do.
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