Oct 11, 2024 - Economy
Bank earnings kick off
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JPMorgan and Wells Fargo kicked off reporting season this morning for U.S. banks and gave industry investors an early sigh of relief.
Between the lines: On top of mind was net interest income — the difference between what banks earn on loans and what they pay on deposits — which is expected to fall in a lower rate environment.
- For JPMorgan, so far, it hasn't. The bank even raised its full-year forecast a smidge for the key revenue line, though CEO Jamie Dimon — rather testily — told analysts that their 2025 forecasts were still too high.
- NII did fall at Wells Fargo, but slightly less than expected. And that was more than made up for by valuation gains from investments and higher fees from investment banking and wealth management.
What we're watching: More banks, including Bank of America, Citigroup and Goldman Sachs, report next week.
