A trio of banks turned in strong first quarter earnings Friday, but warned that the profit growth they've been enjoying from higher rates is starting to fade.Wells Fargo said today its net interest income — the amount it earns from lending vs what it pays to depositors — fell 8% in the first quarter, compared with a year earlier, amid "customer migration to higher yielding deposit products.
JPMorgan Chase saw NII decline 4% sequentially, with CEO Jamie Dimon saying it faces "deposit margin compression and lower deposit balances."are moving their funds from checking and savings accounts to higher-yielding CDs, JPMorgan CFO Jeremy Barnum said on a conference call. "Ongoing migration" is likely to continue, he added. "Even if the current yield curve environment were to change and meaningful cuts were to get reintroduced ... we would still expect to see ongoing migration and yield-seeking behavior."
"Yields on corporate bonds are heading up again as investors have pared back expectations of rate cuts this year," the Wall Street JournalShare on linkedin