US Banks Impacted by Low Interest Rates
(15 September 2020 – United States) JPMorgan and Bank of America have both reduce expectations on interest rate returns as low interest rates shrinks revenue growth.
JPMorgan expect their net interest rate income this year to be lower than the previous year by US$1 billion. Likewise, Bank of America also expect net interest rate revenues to fall by around US$700 million. Although the banks’ lending business has been slow, buoyant financial markets have enabled the claw back of lost revenue. Both banks expect trading revenues to jump by approximately 20 percent by the end of the year - albeit with significant risks.
“While things do look a little bit better than we thought they would, we're still dealing with an enormous amount of uncertainty looking ahead” commented JPMorgan Chief Financial Officer, Jennifer Piepszak.
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