Several U.S. mid-sized and regional banks reported a fall in their second-quarter profit, as income from charging customers interest was squeezed by higher deposit costs and tepid demand for loans.
Most U.S. banks are expecting a decline in net interest income (NII) this year as high interest rates have impeded loan activity, while efforts to retain customers have pushed up deposit costs.
“High interest rates, an uncertain economic outlook and alternative financing challenge continue softening demand for traditional bank lending,” said Chris Stanley, banking industry practice lead, Moody’s.
Source: REUTER
