Interest rates, wages: US banks are entering a new era

Posted Jan 19, 2022, 6:30 PMUpdated Jan 20, 2022, 2:25 PM

Bank of America and Morgan Stanley closed the ball on Wednesday, annual results of major US banks. After JP Morgan, Citi and Wells Fargo on Friday, Goldman Sachs published its accounts on Tuesday. Together, the country’s top six banks posted net income of $160 billion, surpassing the 2019 level by a third. A part of these results is, however, misleading: last year the banks took over part of the provisions they had made in the event that a wave of defaults and payment defaults were to occur with the health crisis, a scenario that ultimately did not happen.

Following its competitors, Bank of America, number one in personal deposits, recorded record net income of $32 billion (for $89.1 billion in revenue). Goldman Sachs has garnered its side $ 21.6 billion in net profit (for $ 59.3 billion in sales), also a higher. And Morgan Stanley made $15 billion in net income (for $59.8 billion in revenue).

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