The news: Goldman Sachs and Morgan Stanley were the last major US banks to release Q4 2022 earnings. Goldman Sachs closed out a year that was both eventful and disappointing, but Morgan Stanley rallied in revenues.
The big takeaway: US banks were buoyed by high interest rates in Q4, but were plagued by a lack of investment deal-making and recession preparations. With large loan loss reserves, the banks are better positioned to weather a storm, but 2023 could still bring rough seas. If the Fed pauses or reverses interest rate hikes, the net interest income holding most banks afloat will cause them to sink. As we wait for the Fed to make its next move, we’re eyeing Q4 2022 performance for UK banks.
Dates to remember: UK banks release their end-of-year results next month.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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