From Quiver Quant:

Major Wall Street banks projected a downturn in net interest income (NII) for 2024 after record-high NII in 2023. Wells Fargo forecasted a 9% NII decline, while Citigroup expects a modest drop, and JPMorgan Chase anticipates quarterly declines. This comes after a lucrative 2023 due to the Federal Reserve’s rapid rate hikes. Factors such as plunging interest rates, rising deposit costs, and worldwide economic pressures have led banks to adopt a cautious stance for 2024. The uncertain future has driven banks to focus on adaptability and efficient resource allocation to navigate the post-peak NII landscape.

JPMorgan achieved a record NII in the last quarter but forecasts an $8 billion decline from its annualized figure due to rate cuts and deposit repricing. Citigroup, which peaked in the second quarter of 2023, expects a slight decrease in NII. Wells Fargo anticipates a 7%-9% drop, citing factors like loan average decline and deposit attrition. The banks’ cautious outlook reveals a significant shift in their revenue and underscores broader economic uncertainties ahead.



Read more: Wall Street’s Net Interest Income Peak: Banks Forecast Revenue Slowdown