What crisis?
It turns out that higher interest rates really are better for big banks, at least for now. That’s the good news, and it’s reserved mostly for the largest US banks that are steadily consolidating their dominance.
Today, Bank of America Corp. joined JPMorgan Chase & Co. and Citigroup Inc. in beating expectations for net interest income and raising full-year guidance. They’re lending to mostly well-off households who can afford to pay them back.
The bad news (for stockholders anyway) is that banks are having to share more of that money with their depositors, which may shrink margins. And smaller banks really are struggling to keep up with growth in net interest income that’s driving near-record profits for the industry’s titans.
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