![] A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/File Photo](https://www.biznob.com/wp-content/uploads/2023/04/JP_800x500.jpeg)
After the March failure of two smaller U.S. banks, JPMorgan Chase & Co. (JPM.N) reported a jump in first-quarter deposits.
According to its first-quarter earnings report, the largest U.S. lender received $50 billion in deposits in March. Wells Fargo & Co (WFC.N) deposits fell, while Citigroup Inc (C.N) deposits remained steady.
Jeremy Barnum, JPMorgan’s finance chief, expects moderate deposit outflows.
Analysts monitor bank balance sheets to see if lenders can fund their operations and withstand financial shocks.
“Investors are scrutinizing various aspects of bank deposit bases to assess funding profiles, net interest margin (NIM) pressures and overall liquidity,” Autonomous Research analysts led by John McDonald said in March.
After Silicon Valley Bank and Signature Bank collapsed last month, authorities guaranteed their clients’ accounts, causing investors to investigate deposits thoroughly.
March brought money to the three financial titans. JPMorgan’s quarter-end deposits rose 2% to $2.38 trillion.
Citigroup’s first-quarter deposits were $1.33 trillion, but CFO Mark Mason said it received a “meaningful deposit inflow” due to the instability.
Wells Fargo deposits fell 2% to $1.36 trillion as consumers switched to higher-yielding accounts and products.
In an email Friday, Stephen Beck, founder and managing partner of New York consulting company cg42, said inflation and an impending recession would reduce industry-wide consumer deposits.
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