Banks Face Challenges in Upcoming Earnings as Rising Rates Strain Revenue and Loan Quality

Banks need to prove they can handle extended period of high interest rates, a key theme in upcoming earnings reports.

JPMorgan appears best positioned as it avoided risky investments during pandemic, unlike some competitors.

Unrealized bond losses are hurting banks like Bank of America. Smaller banks may struggle more.

Loan losses expected to increase as borrowers struggle with repayment.

Higher rates hurt lending revenue but allow banks to charge more interest on loans. Could help banks in 2024 if inflation cools.