Posted 4/12/2024, 2:48:41 PM
Banks Face Margin Squeeze as Rates Rise, Growth Slows for Wall Street Titans
- Net interest income fell at three major banks (JPMorgan, Wells Fargo, Citigroup) as high interest rates compress margins
- Banks paying more for deposits as customers seek higher yields, e.g. moving to CDs
- Banks still better positioned than rivals, but growth is slowing (JPMorgan's estimate for 2024 net interest income flat vs 2023)
- JPMorgan profits up 6% annually but stock dropped 5% as investors reacted to challenges
- Dimon cites "significant uncertain forces" ahead like inflation, quantitative tightening, potential stagflation