By GEORGE MALIKMAN The Wall St. Journal | September 16, 2018 9:22:31PM EST The five largest U.S. banks — JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and Bank of New York Mellon — have earned high marks in their performance on a benchmark of banking and financial services, according to a new report from the Federal Reserve.
The report by Credit Suisse, which measures the performance of banks, provides some context on the progress of banks in recent years.
Credit Suise’s report, released Thursday, notes that banks have made a series of investments that have paid off, including a $5.6 trillion capital plan, $1 trillion of credit-default swaps and $700 billion of fixed-rate mortgage-backed securities.
But there’s still room for improvement, Credit Suiser said.
For example, the banks’ high credit-rating could be a problem because of the impact of their mortgage-relief programs, which were put into place to make mortgages less risky.
Banks that haven’t made significant investments to increase their returns could also suffer, the report says.
Credit rating agencies, meanwhile, have been struggling with the impact that the U.K. voted last month to leave the European Union.
While the banks have had strong earnings this year, the impact on their ratings could be even more dire if the U,K.
opts to leave, Credit Siser said in the report.
A major factor that contributed to the ratings agencies’ lower ratings was the risk that the Federal Deposit Insurance Corporation, or FDIC, could end its $700-billion bailout of U.J.S., which includes a significant portion of the banks.
In an interview Thursday, CreditSiser said the U-K.
could end the bailout with a “massive” haircut to the banks and “could be one of the worst economic times ever.”
The report noted that banks are likely to continue to make investments in new products and services, such as autonomous vehicles, artificial intelligence, machine learning and cloud computing.
However, some analysts say the banks may struggle to continue as they try to improve their results.
Credit Sisers report notes that the ratings companies have a lot to gain by rating banks and their investments, and that the results will be subject to some adjustments in the future.
The ratings agencies said they are encouraged by the progress made by the banks in their investments.
But the ratings firms said the progress on the performance front could be limited if the United Kingdom leaves the EU, which would make the ratings less reliable.
The banks have a “huge amount of leverage” to boost their earnings, Creditsiser said, and they are unlikely to have any significant downside risk if the EU does not leave.
The rating agencies also pointed out that banks need to have more capital, as well as more employees and more technology, in order to continue making progress on their investment and to be competitive with other financial institutions.
While they have increased their investments in financial services in recent months, they still lack enough capital to keep up with demand for loans and other assets, the agencies said.
“We believe banks will continue to be a very large player in the financial services industry in the near term,” said Christopher P. P. Cavanagh, the agency’s chief economist.
CreditSisers report is based on the ratings that it reviewed.
The companies said in a statement that the data “is based on our review of more than a dozen of the most recent and most credible ratings issued by three of the world’s largest credit rating agencies.”
They also said the ratings were based on information from regulators in the U and other countries.
The agencies declined to provide any financial information for their report.
For more: – JPMorgan Chase reported record revenue in the third quarter.
This quarter, it reported revenue of $10.8 billion, up $4.6 billion from the third-quarter of the previous year.
The company also reported earnings of $1.4 billion.
The firm said revenue was up $1 billion from last year.
