Big Banks See Higher Net Interest Income as Rates Rise

[claireokc]

NEW YORK—Wells Fargo & Co. and JPMorgan Chase & Co. reported a rise in net interest income in the first quarter, as the Federal Reserve’s rate hikes help their bread-and-butter business—taking deposits and lending. The Fed raised rates by a quarter point in March to a 0.25 percent-0.5 percent range, and has flagged another half-point move on May 4. These moves, aimed at tackling soaring inflation of 8.5 percent, are expected to bring an end to the low interest-rate environment that banks have faced for most of the past decade, particularly through the COVID-19 pandemic. That should be good news for net interest income, a closely watched measure of how much money banks make from lending. It declined during the pandemic due to interest rate cuts and a drop in borrowing, but is now ticking up. ...

Source: https://www.theepochtimes.com/big-banks ... 06312.html