* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Thursday, July 24, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Black Box Players presents ‘The Three Musketeers’ – CBS 19 News

    Experience the Adventure: Black Box Players Bring ‘The Three Musketeers’ to Life!

    AP Entertainment SummaryBrief at 1:51 p.m. EDT – Channel 3000

    Entertainment Highlights: Key Updates You Can’t Miss

    ‘Devil Wears Prada 2’ casts Anne Hathaway’s love interest replacing Adrian Grenier’s Nate – Entertainment Weekly

    Devil Wears Prada 2′ Casts New Love Interest for Anne Hathaway, Replacing Adrian Grenier’s Nate

    12 ‘Late Show’ Moments Proving Stephen Colbert Can’t Be Replaced – The Mountaineer

    12 Unforgettable ‘Late Show’ Moments That Prove Stephen Colbert Is Truly One of a Kind

    Canes owner Tom Dundon’s real estate firm eyes entertainment complex near RDU – The Business Journals

    Canes Owner Tom Dundon’s Real Estate Firm Unveils Plans for Thrilling New Entertainment Complex Near RDU

    Inspired Entertainment, Inc.’s (NASDAQ:INSE) Price Is Right But Growth Is Lacking After Shares Rocket 29% – simplywall.st

    Inspired Entertainment Soars 29% but Growth Momentum Falls Short

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Behind the Screens: The Impact of Technology on Real Estate – TRREB

    Behind the Screens: How Technology is Transforming the Future of Real Estate

    Sustainserv and Palau Announce Technology Partnership to Leverage Innovative AI Platform to Advance Sustainability Reporting – Business Wire

    Sustainserv and Palau Team Up to Transform Sustainability Reporting with Breakthrough AI Technology

    Morgan Adamski Joins PwC in Newly Created Cyber, Data & Technology Risk Division – HSToday

    Morgan Adamski Leads the Charge in PwC’s Cutting-Edge Cyber, Data & Technology Risk Division

    Transformative technology, support for food entrepreneurs spotlighted – University of Hawaii System

    How Cutting-Edge Technology and Strong Support Are Revolutionizing Food Entrepreneurs’ Success

    Cold Weather Alloy Opens New Possibilities for Space Technology – Universe Today

    Revolutionary Cold Weather Alloy Unlocks New Frontiers in Space Technology

    Defence Holdings PLC Transitions from Esports to Pioneering Defence Technology

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Black Box Players presents ‘The Three Musketeers’ – CBS 19 News

    Experience the Adventure: Black Box Players Bring ‘The Three Musketeers’ to Life!

    AP Entertainment SummaryBrief at 1:51 p.m. EDT – Channel 3000

    Entertainment Highlights: Key Updates You Can’t Miss

    ‘Devil Wears Prada 2’ casts Anne Hathaway’s love interest replacing Adrian Grenier’s Nate – Entertainment Weekly

    Devil Wears Prada 2′ Casts New Love Interest for Anne Hathaway, Replacing Adrian Grenier’s Nate

    12 ‘Late Show’ Moments Proving Stephen Colbert Can’t Be Replaced – The Mountaineer

    12 Unforgettable ‘Late Show’ Moments That Prove Stephen Colbert Is Truly One of a Kind

    Canes owner Tom Dundon’s real estate firm eyes entertainment complex near RDU – The Business Journals

    Canes Owner Tom Dundon’s Real Estate Firm Unveils Plans for Thrilling New Entertainment Complex Near RDU

    Inspired Entertainment, Inc.’s (NASDAQ:INSE) Price Is Right But Growth Is Lacking After Shares Rocket 29% – simplywall.st

    Inspired Entertainment Soars 29% but Growth Momentum Falls Short

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Behind the Screens: The Impact of Technology on Real Estate – TRREB

    Behind the Screens: How Technology is Transforming the Future of Real Estate

    Sustainserv and Palau Announce Technology Partnership to Leverage Innovative AI Platform to Advance Sustainability Reporting – Business Wire

    Sustainserv and Palau Team Up to Transform Sustainability Reporting with Breakthrough AI Technology

    Morgan Adamski Joins PwC in Newly Created Cyber, Data & Technology Risk Division – HSToday

    Morgan Adamski Leads the Charge in PwC’s Cutting-Edge Cyber, Data & Technology Risk Division

    Transformative technology, support for food entrepreneurs spotlighted – University of Hawaii System

    How Cutting-Edge Technology and Strong Support Are Revolutionizing Food Entrepreneurs’ Success

    Cold Weather Alloy Opens New Possibilities for Space Technology – Universe Today

    Revolutionary Cold Weather Alloy Unlocks New Frontiers in Space Technology

    Defence Holdings PLC Transitions from Esports to Pioneering Defence Technology

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

US bank profits fall as competition for deposits erodes lending margins

January 18, 2024
in Business
US bank profits fall as competition for deposits erodes lending margins
Share on FacebookShare on Twitter

US bank profits fall as competition for deposits erodes lending margins
© Reuters. FILE PHOTO: The company logo for Financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. REUTERS/Brendan McDermid/File Photo

By Chibuike Oguh

NEW YORK (Reuters) -Several large U.S. regional banks reported lower profits on Wednesday, in a further sign that the income boost from interest rate hikes by the Federal Reserve is starting to wane.

Charles Schwab (NYSE:), Citizens Financial (NYSE:) and US Bancorp (NYSE:) said that, along with one-off charges, the rising cost of retaining customer deposits ate into fourth-quarter net interest income (NII), the difference between what banks earn from lending and pay on deposits.

Fed rate hikes last year aimed at taming inflation boosted many lenders’ NII, a core business for most regional banks. But growing competition for deposits from the country’s biggest banks is eating into their profits and in some cases subduing loan growth.

Big banks have benefited from an exodus of deposits from small institutions, which were seen as riskier, after Silicon Valley Bank and two other regional lenders collapsed last year.

Potential Fed rate cuts this year will likely further dent NII, some banks have warned.

Charles Schwab’s quarterly profit fell 47%, partly due to a 30% drop in NII on higher deposit costs. Schwab paid an average of 1.37% on deposits, compared to 0.46% a year earlier, it said.

Citizens reported a 71% decline in profit, with NII down 12%. US Bancorp’s profit fell 14% as NII dropped 4.2%. On Tuesday, PNC Financial (NYSE:), another big regional lender, said profits shrank, with NII contracting 8%.

Citizens warned that its NII this year could be 6% to 9% below the $6.24 billion it made in 2023. Shares of Charles Schwab dropped 1.3%, US Bancorp fell 1.7%, while Citizens was up 1.9%.

“For banks, loan demand would be fairly tepid through the first half of the year, and then start to pick up again in the second half,” Citizens Financial CEO Bruce Van Saun told Reuters in an interview on Wednesday.

At 11 U.S. regional banks with assets of $50 billion to $100 billion, analysts expect earnings per share to drop from 2023 mostly due to increased deposit costs, according to LSEG estimates, Reuters previously reported.

The KBW regional bank index was last down 1%, in line with the broader market. Still, it is up about 10% since March when the industry crisis erupted, and some analysts think the sector remains attractive despite NII declines.

“It seems logical that the recent trend higher in share prices is met with near-term turbulence (from both NII softness and normalizing credit trends) – however, we believe the regionals remain attractive over the next 12-18 months as we fully price in the 2025 outlook,” Citi analysts wrote.

As with the largest U.S. lenders which reported earnings on Friday, regional banks also took big one-time charges to replenish the Federal Deposit Insurance Corporation’s (FDIC) deposit insurance fund, which was dented by the crisis.

JPMorgan, Bank of America, and Citigroup posted lower profits on Friday, in part due to lower NII.

Executives at these top banks were generally upbeat on the economy, noting American consumers remained resilient even as defaults on consumer loans are returning to pre-pandemic levels.

But major questions hang over markets, including whether the economy will avoid a recession and, as inflation eases, when the Fed will start to cut rates. Strong U.S. retail sales data on Wednesday showing the economy on a solid footing cast further doubt over market expectations of a Fed rate cut in March.

“I am a little on the cautious side,” JPMorgan Chief Executive Jamie Dimon told CNBC on Wednesday when asked about the U.S. economy.

Speaking to FOX Business Network’s “Mornings With Maria” at Davos on Wednesday, Bank of America CEO Brian Moynihan said the daily debate about where the Fed will take rates continued to create uncertainty for consumers and businesses.

“When the Fed’s done, then the capital markets reopen. Then people say, OK, 3.5 to 4% unemployment rate. I got my job, I got my wages, you know, things settle in.”

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/us-bank-profits-fall-as-competition-for-deposits-erodes-lending-margins-3276570

Tags: businesscompetitionprofits
Previous Post

ComCom heads to High Court for first time over vehicle loans

Next Post

Yellen says US economic performance ‘vindicates’ pandemic-era spending

Threat reduction must be coupled with targeted recovery programmes to conserve global bird diversity – Nature

Threat reduction must be coupled with targeted recovery programmes to conserve global bird diversity – Nature

July 24, 2025
Three Recent Texas Science Graduates Receive Fulbright U.S. Student Awards – College of Natural Sciences

Three Texas Science Graduates Honored with Prestigious Fulbright U.S. Student Awards

July 24, 2025
An Extra Sense May Connect Gut Bacteria With Our Brain – ScienceAlert

An Extra Sense May Connect Gut Bacteria With Our Brain – ScienceAlert

July 24, 2025
Nutrition and lifestyle hold the key to overcoming obesity risk – The Hans India

Unlock the Secret to Beating Obesity: How Nutrition and Lifestyle Transform Your Health

July 24, 2025
He ‘found his place in the world’ through football. Then came 15 years of suffering – The New York Times

From Football Dreams to 15 Years of Unyielding Struggle: One Man’s Journey to Finding His Place in the World

July 24, 2025
How Nuclear Fusion Could Revive This State’s Startup Economy – Inc.com

How Nuclear Fusion Could Spark a Revival in This State’s Startup Scene

July 24, 2025
Hollywood’s writers won the strike but lost the work – Spectrum News

Hollywood Writers Win Strike Victory but Confront New Challenges Ahead

July 24, 2025
Health For All reminds Brazos Valley of healthy habits, resources during summer months – KBTX News 3

Stay Healthy This Summer: Must-Know Tips and Resources for Brazos Valley Residents

July 24, 2025
Democrat Roy Cooper expected to run for Senate from North Carolina, sources tell CNN – CNN

Democrat Roy Cooper Launches Thrilling Campaign for North Carolina Senate Seat

July 24, 2025
Behind the Screens: The Impact of Technology on Real Estate – TRREB

Behind the Screens: How Technology is Transforming the Future of Real Estate

July 24, 2025

Categories

Archives

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
« Jun    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (737)
  • Economy (760)
  • Entertainment (21,642)
  • General (16,078)
  • Health (9,798)
  • Lifestyle (768)
  • News (22,149)
  • People (762)
  • Politics (769)
  • Science (15,976)
  • Sports (21,257)
  • Technology (15,742)
  • World (743)

Recent News

Threat reduction must be coupled with targeted recovery programmes to conserve global bird diversity – Nature

Threat reduction must be coupled with targeted recovery programmes to conserve global bird diversity – Nature

July 24, 2025
Three Recent Texas Science Graduates Receive Fulbright U.S. Student Awards – College of Natural Sciences

Three Texas Science Graduates Honored with Prestigious Fulbright U.S. Student Awards

July 24, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version