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  5. 1st Quarter Earnings Season: The Biggest US Banks Exceed Treasury Management Revenue Expectations

1st Quarter Earnings Season: The Biggest US Banks Exceed Treasury Management Revenue Expectations

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13 April 2023
Patricia Hines

In the face of significant turmoil in late 2022, the Celent Corporate Banking team was surprised when it observed significant treasury services and cash management revenue growth from the world’s leading corporate banks. Fast forward to 2023. Over the last several weeks, investors and industry analysts anxiously awaited banking financial results due to recent bank failures and continued interest rate raises.

Today is the beginning of the first quarter earnings season, and the largest US banks kicked it off with a bang.

Citi Institutional Clients Group reported Treasury and Trade Solutions’ 1st quarter revenue of $3.4BN, a 31% year-over-year increase. Citi also published statistics on key revenue drivers: A 10% YoY growth in cross-border transaction value (from $76BN to $83BN) and a dramatic 40% YoY increase in commercial card spend volume (from $11BN to 16BN).

JPMorgan Chase Payments business combines cash management, payment solutions, and merchant services to corporate clients, financial institutions, and governments. At $4.5BN, payments revenue was up 72%, predominantly driven by higher rates, partially offset by lower deposit balances. Total 1Q23 payments transaction volume was 1.4TN, an increase of 8% over 1Q22.

Wells Fargo Corporate and Investment Banking reported Treasury Management and Payments 1st quarter revenue of $786MN, an 82% YoY increase.

PNC Corporate & Institutional Banking reported card and cash management revenue growth of 6% YoY, rising from $620MN to $659MN.

This group of banks beat expectations, but it’s still early in a potentially challenging earnings season. Smaller, regional and community banks will continue to announce earnings through late April. The Celent team looks forward to meeting with our banking colleagues to discuss the technology implications of a turbulent economic and business environment. Look for us at next week’s Nacha Smarter Faster Payments conference, and check out the agenda for Celent’s Navigating Turbulence event in New York City on May 4th. Drop us a line if you’re a financial institution interested in attending.

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