U.S. Banks 1Q23: Sound Results in a Historic Quarter Do Little to Quell Banking Sector Fears; More Storms Ahead?Banking Organizations
This commentary reviews 1Q23 results for U.S. banks.
Key highlights include:
• DBRS Morningstar-rated U.S. banks reported solid results in a historic 1Q23.
• Deposit outflows at banks in our coverage universe have been relatively modest, and in line with our expectations, given the impact of quantitative tightening.
• We see the largest banks as well positioned in this particularly volatile environment, and while all our rated banks currently have Stable trends, we clearly see that the downside risks are growing.
“Notwithstanding the turmoil, quarterly results at U.S. banks under our coverage were good overall and consistent with long-term trends,” said Michael McTamney, CFA, Senior Vice President - Global FIG.