Impacts of Increasing Deposit Costs on U.S. Bancorp's Profit
Wednesday, 17 July 2024, 11:54
Summary
U.S. Bancorp's net interest income (NII) experienced a 9% decline to $4.05 billion in the quarter, influenced by increased deposit costs amidst higher interest rates. Customers are exploring alternatives like money-market funds for better returns, affecting the bank's profitability.
Key Points:
- Net Interest Income: Dropped by 9% to $4.05 billion.
- Deposit Costs: Rising due to higher interest rates.
- Borrowers: Postponing loan uptake until interest rates normalize.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.