News on Medial

Falling Rates Aren’t as Bad as Feared for JPMorgan, Wells Fargo

Livemint · 1m

- JPMorgan Chase & Co. surprised investors with an increase in net interest income, soothing concerns about the impact of the Federal Reserve's efforts to engineer a soft landing for the economy. - Wells Fargo & Co. experienced a decline in net interest income in the third quarter but expects the drop to be less severe in the final three months of the year. - JPMorgan executives anticipate that the looming drop in net interest income could subside by the middle of next year. - Wells Fargo believes that lower interest rates will alleviate pressure to pay out more to depositors and help moderate the decline in net interest income. - Lower interest rates have benefited dealmakers, leading to increased investment-banking fees for Wells Fargo and surge in revenue from debt capital markets, equity underwriting, and advisory for JPMorgan.