Uncertain Interest Rates Pose Challenges for U.S. Banks

NEW YORK -

"It's certainly challenging these days to forecast NII, given all of the volatility that we've seen across a lot of the different data points, as well as some of the uncertainty that's out there relative to how our clients are going to behave," Wells Fargo's finance chief Michael Santomassimo said. JPM reported that NII rose 11% but it forecast that full-year income from interest payments would be below analysts' expectations. JPM's executives have warned for months that its surging NII was not sustainable.

At Citigroup, net interest income increased 1% year-on-year. The bank forecast that NII excluding markets would be down modestly, as growth would be from noninterest-bearing revenue. Citi CFO Mark Mason said on a conference call that the fewer rate cuts expected this year don't"have a material impact" on the bank's guidance.

Source: Loan Digest (loandigest.net)

Interest Rates U.S. Banks Profits Cautious Stance Federal Reserve Inflation Net Interest Income Forecast

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