Big Banks Face Declining Profits Amid Rising Deposit Costs

Lower net interest income and subdued loan demand contribute to projected earnings drop for major U.S. banks.

Rising deposit costs have led to a significant decrease in net interest income for major banks, with expectations of the lowest lending income in two years.
The Federal Reserve's interest rate cuts could potentially ease deposit costs in the future, but current earnings are still under pressure.
JPMorgan Chase and Wells Fargo are set to report lower profits due to shrinking interest income and weak loan growth.
Investment banking revenues have seen modest increases, but remain below historical levels, with mergers and acquisitions activity still muted.
Consumer loan delinquencies are plateauing, yet banks are increasing provisions for potential loan losses, further impacting profit margins.