Despite the failure of two big US banks, JPMorgan Chase is still making money.
The corporation posted a 52 percent increase in first-quarter profits on Friday, indicating that rumors of a coming banking crisis was just that: chatter. According to Chase's chief financial officer, Jeremy Barnum, the bank's profitable quarter is the consequence of two factors: increased interest rates and $37 billion in first-quarter deposits, which occurred after the March bankruptcies of Silicon Valley Bank and Signature Bank.
"These were the most watched bank earnings announcements in over a decade, with market participants scouring the results looking for signs of cracks in the U.S. banking sector,” says Octavio Marenzi, CEO of the consulting firm Opimas LLC. “Those analysts looking for signs of the banking crisis were greatly relieved to not find any."