33.9 F
Fort Worth
Monday, November 30, 2020
Banking Falling rates hit banks

Falling rates hit banks

Other News

Exxon’s oil slick

Exxon Mobil is slashing its capital spending budget for 2020 by 30% due to weak demand caused by the COVID-19 pandemic and a market...

Folk music’s Mark Twain: 7 Essential tracks from John Prine,

NEW YORK (AP) — Some people, the songs just come out of them. For nearly half a century, they tumbled out of John Prine...

Tarrant County records another COVID-19 death

Tarrant County Public Health (TCPH) on Wednesday, April 8 reported that a resident of Euless has died as the result of the COVID-19 virus....

Tradition stymied: A year unlike any since WWII for Augusta

The Masters is so intertwined with Augusta, they added an extra day to spring break.You see, the first full week of April isn't just...

The nation’s biggest banks are starting to feel pressure from the Federal Reserve, which has started a campaign to lower interest rates to keep the U.S. economy afloat. While profits at JPMorgan Chase, Citigroup, Wells Fargo and Bank of America were generally higher this quarter, one place all four banks saw weakness was in their net interest margins. Net interest margin is the difference between how much it costs the bank to borrow money, and how much they charge to lend it out. It’s

effectively a bank’s profit margin on loans. At JPMorgan, the bank’s NIM fell from 2.56% in the first quarter 2019 to 2.41% in the third quarter. It’s at its lowest level since 2017. There were similar declines at the other big banks. The Fed’s rate cuts have lowered banks’ borrowing costs, but in turn banks have lowered their own rates to stay competitive. Since banks still have fixed costs like salaries and offices to pay for, lower rates can eat into their profit margins. With further rate cuts likely, profit margins at the big banks face even more pressure going forward.


close






Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Stocks edge higher on Wall Street on latest vaccine hopes

NEW YORK (AP) — U.S. stocks edged higher in morning trading Monday after investors received several pieces of encouraging news on COVID-19 vaccines and...

Mnuchin denies he’s trying to hinder incoming administration

WASHINGTON (AP) — Treasury Secretary Steven Mnuchin denied that he is attempting to limit the choices President-elect Joe Biden will have to promote an...

Bank of America announces $2.65 million jobs initiative for Texas Black and Hispanic-Latino students

Bank of America announced a new multimillion dollar jobs initiative Nov. 19 to help students of color complete the education and training necessary to...

PNC to buy US unit of Spain’s BBVA bank for $11.6 billion

NEW YORK (AP) — PNC Financial Services Group said Monday it is buying the U.S. subsidiary of Spain's BBVA bank for $11.6 billion in...

Banker gets 1-year term for coronavirus relief funds fraud

By MATTHEW BARAKAT Associated PressALEXANDRIA, Va. (AP) — A northern Virginia banker who admitted illegally receiving $1.4 million in fraudulently obtained coronavirus relief funds...