Rising deposit costs aren’t unique to any bank right now—even giants such as JPMorgan Chase and Wells Fargo. But some banks, because of the nature of their business, might be feeling the effect of them more than others.
Trust bank State Street beat analysts’ second-quarter bottom-line net income forecast in its Friday report, but investors may be focusing on a core measure of lending and investment revenue: net interest income. JPMorgan and Wells Fargo beat analysts’ forecasts for net interest income, as did Citigroup, but State Street came in slightly below consensus, according to Visible Alpha.
While JPMorgan and Wells Fargo traded up for most of Friday’s session, shares of State Street are down around 10%. Peer trust banks Northern Trust and Bank of New York Mellon and are also down sharply, as is the KBW Nasdaq Bank index.
Source: https://www.wsj.com/livecoverage/stock-market-today-earnings-07-14-2023/card/state-street-plummets-as-deposit-costs-rise-it-might-be-a-better-indicator-for-banks-than-jp-morgan-UkPsa0Nh6PSsIaX3lSpC?siteid=yhoof2&yptr=yahoo