US Banks Earnings Visualized

US Banks Earnings Visualized

What did we learn from the nation's top lenders?

NII pressure: The slowdown in net interest income (NII) continued in Q3—but less than anticipated. JPMorgan even raised its NII projection for 2024.

Fees to the rescue: Banks were able to mitigate the NII slowdown with other revenue sources, showing their diversified revenue streams. Wells Fargo highlighted a 16% growth in fee-based revenue this year.

Investment banking activity rebounded strongly for some banks (albeit from a low base), driven by increased dealmaking and a recovering IPO market. Most analysts expect this trend to continue.

Trading on the rise: BofA, Goldman, and Citigroup saw a surge in equity markets, boosted by strong volatility.

Economy in good shape: Goldman CEO suggested the rate cut cycle has “renewed optimism for a soft landing.”

Credit concerns rise: Credit loss provisions increased again across major banks, particularly against cardholder defaults. Some banks highlighted slowing card spending growth and rising late card payments.

Office buildings struggle: Landlords have a hard time with many companies adopting hybrid work. While substantial allowances cover the risk, losses could be lumpy and take a while to play out.

Regulatory scrutiny persists: Regulatory challenges remained a key concern, notably at Citigroup, where a potential asset cap has been a focal point during the latest earnings call.