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The NII, which is the difference between the interest earned on loans and the amount paid out on deposits, also saw a significant increase. JPMorgan’s NII rose by 30%, while Wells Fargo’s increased by 8%. This positive trend was reflected in the KBW index of bank shares, which rose by 1.1%, and in the increased value of JPMorgan and Wells Fargo shares.
However, not all news was positive. Wells Fargo reported a decline in loan balances as customers depleted their savings. The bank also noted an increase in charge-offs in its credit card portfolio. Citigroup reported a modest profit gain of 2% but highlighted a continued slowdown in spending.
PNC Financial Services reported a drop in profit of 4.26% to $1.57 billion. The bank also experienced a 2% NII decline, increased funding costs, and a decrease in average deposits. However, despite these challenges, it was noted that bank deposits have generally stabilized across the sector.
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