U.S. Banks Face Earnings Pressure from Rising Interest Rates

Net interest income declines across major banks as higher deposit costs and loan charge-offs impact financial performance.

U.S. Bancorp forecasts a decline in net interest income for 2024, citing higher interest rates affecting deposit mix and pricing.
Large U.S. banks report a collective drop in profits, with increased interest expenses significantly impacting first quarter earnings.
Bank of America's first-quarter profits fall 18%, driven by higher loan charge-offs and rising costs for deposits.
Investment banking fees show signs of recovery, benefiting banks like Goldman Sachs and Morgan Stanley with substantial increases.
Banks continue to provision for losses from the 2023 bank failures, adding financial strain to their quarterly results.