Reported 2 months ago
As third-quarter earnings season kicks off, investors are closely watching how the Federal Reserve's recent rate cuts will impact major U.S. banks like JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup. Analysts are predicting a decline in net profits due to high lending costs amidst elevated interest rates. With further rate cuts on the horizon, the focus shifts to future earnings as banks adjust their borrowing rates, which could affect net interest income—a crucial metric for profitability. Observations indicate that banks may face challenges in quickly lowering deposit costs, especially in comparison to smaller regional banks that typically thrive with declining rates.
Source: YAHOO