20 Feb 2024 | Financial Services | infographics

Rising Deposit Costs Squeeze US Bank Profits

US Banks are facing challenges as they warn of lower interest income due to deposit cost pressures and a slowdown in loan growth. Major banks reported a steep decline in net income in Q4’23, with rising interest rates increasing payouts to depositors and elevating default risks for loans. The Federal Reserve's firm stance led to 11 interest rate increases since March 2022, maintaining rates at 5.50%. Projected industry ROE declines reflect profitability expectations for 2024 amidst higher inflation and technology investments. Jasper Colin Solutions offer AI-powered due diligence, research-backed insights, and technology-powered data analytics to enhance performance amid higher rates, optimizing net interest margins and credit quality.