Despite higher rates, consumer and corporate borrowing kept pace, lifting
JPMorgan, Citigroup and Wells Fargo to a combined Q3 net interest income of
$56.5bn, the fifth consecutive quarter of record NII, results published Tuesday
showed. JPMorgan said it expects net interest income to increase further in
2027, a contrast with earlier industry assumptions of falling rates when record
trading revenue had drawn investor focus. All three banks reported declines in
nonaccrual loans and said borrowers broadly remain able to service debt. BofA
will report Q3 results on Wednesday. Banks said they remain cautious amid
geopolitical risks in Ukraine and the Middle East, persistent inflation and
elevated oil prices.
