Coldplay once famously sang that you can “get what you want, but not what you need” — and in a way, that’s how banks are feeling this earnings season, even as analysts applaud results that have surpassed expectations. CitigroupC

, Bank of AmericaBAC

, and Goldman SachsGS

followed last week’s strong bank earnings with their own impressive reports, lifting US bank stocks to their highest levels since before the fall of Silicon Valley Bank. The earnings suggest that the impending forecasts of disaster for the sector may have been overstated, as investment banking and wealth management helped to offset rising loan losses.

• Citigroup and Bank of America reported third-quarter profit declines of 9% and 12%, respectively, compared to a year ago, but these drops were not as severe as analysts had feared.
• On the other hand, Goldman Sachs saw a 45% surge in profits and a 7% increase in revenue, buoyed by strong performance in stock trading and investment banking.

Signs of resilience: The Federal Reserve’s aggressive interest rate hikes in recent years raised concerns about a potential recession. The big US banks have faced pressure from higher interest rates, leading to increased loan losses and tighter conditions for consumers. Yet, consumer resilience is proving stronger than expected. Bank of America CEO Brian Moynihan noted ongoing robust consumer spending, even amid higher prices, stating, “This is not to say that consumers are not worried about higher prices … But overall spending activity is fine and the US consumer is doing fine” (FT).