Bank earnings kick off with JPMorgan, Wells Fargo amid concerns about rising rates, bad loans
Publishing timestamp: 2023-10-12 16:16:57
Summary
The article discusses how higher interest rates are expected to lead to losses on banks' bond portfolios and funding pressures. It mentions that banks' per-share earnings fell 18% in the third quarter due to compressed lending margins and decreased loan demand. The article also discusses the impact of rising yields on banks' bond values and the potential for increased loan loss provisions. It mentions specific banks that may be more affected by these factors. However, there is also mention of the potential for stability in deposit levels and guidance on net interest income to support some banks. Overall, the article suggests a challenging outlook for banks in the near term but also mentions the possibility of a relief rally.
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