Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.
Three of America's banking giants recently experienced a significant reduction in deposits, raising eyebrows in the financial sector.
What Happened: Major financial institutions, namely JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC) and Citigroup Inc (NYSE: C), collectively saw an exodus of $84.5 billion in deposits during the third quarter.
Breaking down the numbers, JPMorgan Chase's deposits shrunk by $31 billion, while Wells Fargo's deposits decreased by $7.1 billion. Citigroup faced the steepest decline, with a drop of $46.4 billion. Despite these challenges, JPMorgan Chase reported a net income of $13.2 billion for the quarter.
On a broader scale, data from the Federal Reserve Bank of St. Louis indicates a trend of declining deposits across all commercial banks, from a high of $18.203 trillion to currently $17.365 trillion.
Also Read: Rising Risk: US Banks Face Deposit Flight Threat With Shrinking Profits
Jamie Dimon, the CEO of JPMorgan, voiced his concerns about the global landscape, hinting at potential rate hikes in the future.
"Currently, U.S. consumers and businesses generally remain healthy, although consumers are spending down their excess cash buffers. However, persistently tight labor markets as well as extremely high government debt levels with the largest peacetime fiscal deficits ever are increasing the risks that inflation remains elevated and that interest rates rise further from here," he said in a statement to shareholders.
Now Read: Here's How $78 Billion Exited The US Banking System In Just One Week
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