Elder banks The US is expected to announce this week that clients withdrew tens of billions of dollars in deposits in early 2023 despite new clients coming in after the crash. Bank of Silicon Valley.

Analysts predict that contributors Seeking higher returns in alternative investments such as money market funds pulled a total of nearly $100 billion out of JPMorgan, Bank of America, Citi and Wells Fargo in the first three months of 2023, according to data compiled by Bloomberg.

Deposits are usually the cheapest source of funding for banks, and cutting them could limit the financing of the economy. Major banks have been steadily losing deposits over the past 12 months, despite the Federal Reserve’s interest rate hike. “Three things to look out for in quarterly results are deposits, deposits and more deposits,” said Jason Goldberg, an analyst at Barclays.

JPMorgan, Citi and Wells Fargo report results on Friday, followed by Bank of America on April 18. Goldman Sachs and Morgan Stanley, which are more active in investment banking and asset management, report data for April 18 and 19, respectively.

The top six US banks are expected to see first-quarter earnings up just over 6% year-on-year.

Average First Quarter Revenues at Top 6 Banks USA they are expected to rise just over 6% year-on-year, with earnings per share up just over 1%, according to Bloomberg estimates. Analysts expect banks with active retail banking to grow the most, such as JPMorgan, BofA, Citi and Wells.

OUR investment activities of banks this is expected to be another tough quarter as Wall Street faces a prolonged trading slowdown that is expected to hit Goldman and Morgan Stanley hardest.

Even before its collapse SVB and Signature, there was an outflow of deposits from the banking system into higher-yielding investments such as mutual funds, as many banks did not give depositors significantly higher interest rates. However, the outflow of deposits forces them to change course, even though the losses of large banks were partially offset by the inflow of deposits from smaller banks after the collapse of the SVB. The latest Fed data shows that since March 8, when concerns arose about the viability of the SVB, the top 25 US banks have received $73 billion in deposits. During the same period, smaller banks outflowed $206 billion.

Major banks such as JPMorganconsidered by regulators to be of systemic importance to the economy, savers also view them as better custodians of their funds because they are regulated.

However, the influx of deposits into these banks will be short-lived unless they offer higher interest rates to compete with other savings products such as mutual investment, which generated more than $350 billion last month.