Daily newsletter · Mon 12 Oct 2026
America's big banks report this week, and their shares are down 13% since August
America's biggest banks open the results season on Tuesday in New York. JPMorgan Chase, Goldman Sachs, Wells Fargo and Citigroup report before the open. Bank of America and Morgan Stanley follow on Wednesday.
So why have bank shares fallen so far? The KBW Nasdaq Bank Index is 13% below its mid-August peak. Truist Securities analyst Brian Foran said financials just had their worst month against the S&P 500 since 1990.
Yields are the problem. Higher rates let a bank charge more on loans, but they also push up what it pays depositors. A 10-year yield above 5% has also slowed the deal-making that feeds investment banks.
The profits still look healthy. JPMorgan is expected to earn about US$5.90 a share on roughly US$51 billion of revenue. It has told investors its investment banking fees and trading revenue rose by a mid-to-high teens percentage.
Bank of America is less upbeat. Chief executive Brian Moynihan has warned that its investment banking fees fell at least 10% in the quarter.
the deposit line matters more than the profit line. UBS analyst Erika Najarian says investors need to see deposit costs contained. I'd want to hear that from JPMorgan on Tuesday before concluding the yield spike has done the business no lasting harm.
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