The collapse of Silivon Valley Bank followed Signature Bank has shaken up the sector in the US and across the globe, with the crisis dealingt a final blow to troubled lender Credit Suisse. But as giants fell due to rising interest rates and faulty investments, some banking majors in the US are benefiting from the Federal Reserve's hikes.
Followed by Wells Fargo, another lender JPMorgan Chase has clocked a 52 per cent jump in profits on the back of a record first-quarter revenue.
Numbers beyond expectations
For the January to March quarter, the American financial institution also reported a 50 per cent surge in its net income from interest, as the US fed continued to raise repo rates.
The rise also put profits at $12.62 billion, despite a loss of $868 million on securities, as it surpassed market expectations.
After the positive performance, shares of JPMorgan Chase also jumped by as much as 5.8 per cent in pre-market trading.
Standing firm during a crisis
Deposits at JPMorgan Chase went up by $37 billion, while higher interest rates only allowed the lender to charge more from borrowers.
It also benefited from the SVB and Signature Bank crash, as the turmoil made clients move their money from smaller lenders to larger players for stability.
JPMorgan Chase's status as an institution which is too big to fail and will find government support, also helped it stand strong during the banking crisis.
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