America’s biggest banks are having a phenomenal year, grabbing a bigger share of the banking industry’s profits than they have in almost a decade.
Profit Powerhouse
JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo – the top four – made a combined $88 billion in the first nine months of the year. That’s a whopping 44% of all banking profits! Add in US Bank, PNC, and Truist, and the top seven banks control a staggering 56% of the profits – up from 48% last year.
The banks themselves weren’t keen on commenting on this impressive feat. PNC didn’t respond to questions, while the others stayed mum.
Why the Big Banks are Winning
Analyst Chris Kotowski from Oppenheimer explains that smaller banks struggle to compete. It’s tough for them to make the necessary investments and build the brand recognition of the giants. With people moving around the country more than ever, having a big national bank is a huge advantage.
The success of the big banks also highlights the challenges faced by smaller institutions. They’re battling stricter regulations, unpredictable interest rates, and the ability of larger banks to easily expand their digital reach nationwide.
