A Bad Day for Big Banks on Wall Street
JPMorgan and Wells Fargo both reported net interest income—the earnings they generate from lending—that missed analysts’ estimates Friday. At JPMorgan, that income slipped from the prior quarter for the first time in almost three years. Shares of the largest US bank fell the most since 2020. With stubborn US inflation making it more likely the Fed will have to delay interest-rate cuts, shareholders were eager to hear how much more that might boost revenue from lending. Instead, banking executives took turns talking about how depositors are chasing higher returns on their savings. At Wells Fargo, deposits that don’t pay interest slumped 18% from a year earlier, while those that do jumped.
