From CNBC: 2024-04-11 14:25:51

Big banks are set to report quarterly earnings, benefiting from expectations for fewer interest rate cuts. JPMorgan Chase leads the group, followed by Bank of America and Goldman Sachs. Smaller banks like Valley Bank may face challenges due to a lack of expected rate cuts and higher deposit costs.

Large banks like JPMorgan are poised to take advantage of higher interest rates, with diverse revenue streams contributing to strong first-quarter results. Smaller banks may struggle with higher deposit costs and exposure to commercial real estate loans coming due this year.

After the chaos of last year’s banking crisis, large banks are expected to outperform their smaller counterparts this earnings season. Concerns over commercial real estate loans and deposit costs continue to impact smaller banks, while larger banks like JPMorgan remain well-positioned to benefit from higher interest rates.

Read more: High interest rates set to pressure small players