Biggest Banks Feel Fed Pain as Lower Rates Start to Hit Revenue
- JPMorgan cuts interest-income forecast as streak snapped
- Dimon says NII ‘like the wind blowing’ and won’t change plans
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Jamie Dimon compared the fickleness of banks’ biggest revenue source to the wind. For the first time in years, it’s blowing against them.
Dimon’s bank, JPMorgan Chase & Co., snapped a three-year streak of quarterly increases in net interest income -- revenue from customers’ loan payments minus what the bank pays depositors -- and said it will fall further in the second half of 2019. Wells Fargo & Co. posted its smallest lending income since 2016, while Citigroup Inc.’s net interest margin hit the lowest in five quarters.