The US banking industry had to cope with multiple challenges in 2022, including an unprecedented pace of monetary tightening by the Federal Reserve, the highest inflation in 40 years and volatile markets. However, banks also had several tailwinds in 2022, including expanding net interest margins, strong loan growth and benign credit performance, according to Fitch in its November report, US Banks Outlook 2023.
An impressive 81 lenders in the Top 100 US Banks 2023 ranking improved their Tier 1 capital position in 2022. Together they managed to increase the ranking’s aggregate total to reach $1.79bn, albeit a rise of just 1%. In addition, 61% expanded their asset base, but just 43% recorded an increase in pre-tax profits (PTP). All bar one of the top 10 banks — PNC Financial Services Group — saw a drop in year-on-year PTP.