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Big US banks warn of sting from higher rates
The benefits of high interest rates are fading for the nation's biggest banks as depositors increasingly moved funds to higher-interest-bearing accounts last quarter. Why it matters: A trio of banks turned in strong first quarter earnings Friday, but warned that the profit growth they've been enjoying from higher rates is starting to fade. Between the lines: Wells Fargo said today its net interest income (NII) — the amount it earns from lending vs what it pays to depositors — fell 8% in the first quarter, compared with a year earlier, amid "customer migration to higher yielding deposit products." JPMorgan ... (full story)