Rising interest rates in the US are curbing lending growth at big US banks in the third quarter. Revenue from lending fell at banks like JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America as rate increases cut demand for mortgages and other loans. Net interest margins, the difference between what banks pay on deposits and earn from loans, have risen but not enough to offset the hit to outstanding loan balances from higher rates and weaker demand. Net income still rose for most banks due to higher net interest income but the trajectory of lending growth has slowed noticeably.
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00:00 It's Benzinga and here's what's on the block.
00:02 Rising interest rates in the US are curbing lending growth at big US banks in the third
00:06 quarter.
00:07 Revenue from lending fell at banks like JPMorgan Chase, Citigroup, Wells Fargo, and Bank of
00:11 America as rate increases cut demand for mortgages and other loans.
00:15 Net interest margins, the difference between what banks pay on deposits and earn from loans,
00:19 have risen but not enough to offset the hit to outstanding loan balances from higher rates
00:24 and weaker demand.
00:25 Net income still rose for most banks due to higher net interest income, but the trajectory
00:29 of lending growth has slowed noticeably.
00:33 [BLANK_AUDIO]