Recently, major banks in the United States delivered strong financial performance in the first quarter, including Morgan Stanley (MS), Goldman Sachs (GS), Citigroup (C), Wells Fargo, JPMorgan Chase (JPM), and Bank of America (BAC), with revenues and profits meeting or exceeding analysts' expectations. Consumer spending remained robust this quarter, and increased capital market activity also drove profits for Wall Street banks.

However, despite the promising financial reports, banks face pressure from rising interest rates. Despite continued market growth, banks' profit margins are being squeezed by the steadily rising rates. Banks have warned that although the recovery in the capital markets remains fragile, revenue and profit growth for this year may not be substantial.

The investment banking divisions performed well in the first quarter, particularly in bond and equity underwriting. Investment banking fees for Goldman Sachs and Citigroup grew by over 30% year-on-year, but overall investment banking activity remains below historical levels.

Challenges facing banks include higher demands from customers for deposit rates and potential risks of capital outflows. Additionally, if interest rates remain unchanged, banks may face long-term difficulties.