JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. are reeling in windfalls from higher interest rates that upended smaller lenders last month.
The three giant U.S. banks, which kicked off the industry’s quarterly earnings reports Friday, are each finding ways to benefit from rate hikes that contributed to the collapse of Silicon Valley Bank in March and left customers at regional lenders racing to move uninsured deposits to safe havens.
JPMorgan posted a surprise 2% increase in deposits despite what analysts predicted will be a broader migration of savers to higher-yielding investments. Citigroup boasted one of its best fixed-income trading hauls in a decade as clients reacted to changing rates. And all three firms said income from lending jumped from a year earlier after Federal Reserve hikes.
