Bank Performance in 1Q 2024

Bank Net Income Falls Year-Over-Year In 1Q

Net income fell 19.5% year-over-year (YoY) at U.S. banks in 1Q 2024, declining to $64.6 billion from $80.2 billion in 1Q 2023, according to call report data on all U.S. banks compiled by KBRA Financial Intelligence (KFI). Higher interest expenses and negative loan growth curbed profitability.

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Deposits Stabilize

U.S. banks added deposits for the second straight quarter after losing $1.4 trillion over the previous six periods.

Loan Growth Falls

Loan growth decreased 0.4% in 1Q 2024, the biggest quarterly decline in three years. A drop in credit card lending partly led to the decline.

Delinquencies Tick Up

Delinquency rates in 1Q 2024 were muted quarter-over-quarter (QoQ), rising 2 basis points (bps), but climbed 20 bps YoY. Credit cards and investor properties (Other nonfarm, nonresidential loans) have seen the biggest jump in overdue loans with delinquency rates rising 73 bps and 80 bps YoY, respectively.

Loan Loss Provisions Moderate

Provisions for loan and lease losses remain stable at about $20 billion over the last six quarters.