U.S. bank deposits rose for the first time in 11 weeks, the Federal Reserve announced Friday in its delayed H.8 release. Lending conditions loosened for the first time in three weeks, indicating credit conditions may be stabilizing after the March panic. Meanwhile, JPMorgan and Wells Fargo easily surpassed earnings expectations as they kicked off quarterly bank results Friday morning.
Bank Deposits
U.S. commercial bank deposits rose by $60.7 billion to $17.251 trillion for the week ending April 5, the Fed announced Friday. Deposits fell for the 10 weeks prior, declining by $64.7 billion for the week ending March 29.
Domestically chartered bank deposits increased $44.7 billion. Small banks saw $23.6 billion in deposit inflows over the week, after deposits inched up by $1.5 billion the week prior. Deposits at the 25 largest domestic banks increased by $21.1 billion for the week.
For the previous Fed release, domestic bank deposits fell by $38.3 billion.
Overall lending rose by $10.2 billion last wee, the first increase in three weeks, led by a $13.1 billion increase at large banks. Foreign institutions in the U.S. decreased lending by $6 billion for the week.
Total borrowing fell by $94.7 billion with major cuts at domestic banks. Large banks slashed borrowing by $39.1 billion while small firms reduced it by $22.2 billion.
The cash assets at small banks shrank by $38.3 billion, which was slightly offset by the $14.3 billion increase at large institutions. Overall bank credit rose, led by large domestic banks.
Total bank provisions for losses rose for the second week in a row, increasing $4.8 billion. For the week prior, banks earmarked an additional $1.1 billion for potential losses. Small banks increased loss reserves by $1.6 billion over the week after decreasing their provisions by $400 million last week.
Upcoming Earnings
Meanwhile, Bank of America (BAC), Goldman Sachs (GS), Morgan Stanley (MS) and Charles Schwab (SCHW) all report next week.
Also, superregionals Comerica (CMA), U.S. Bancorp (USB), Regions Financial (RF), Truist Financial (TFC) and KeyCorp (KEY), among others will report. So does Phoenix-based Western Alliance Bancorp (WAL).
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