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Net interest income is the difference between the interest a bank earns from its loans and the interest it pays out on its deposits, and is an important metric for banks. Its global markets segment led the way, with revenue climbing 12% to $5.5 billion, powered by trading revenue and investmentbankingfees.
While NII typically can be pressured as the Fed lowers rates , given that we've had an inverted yield curve (where two-year Treasury yields have been higher than 10-year Treasury yields) for quite some time, the normalization of the yield curve should help most big banks moving forward.
The stockmarket generally continued its upward trajectory on Wednesday, although a pullback in tech equities led the Nasdaq Composite to give up its gains for the day. Goldman's global banking and markets segment took the biggest hit, with revenue falling 14% from year-ago levels.
But you mentioned their equities trading, which was really strong, their investmentbankingfee growth, which was 29% year over year, which came from a very low bar, but now more companies are going public, more M&A activities happening, and the banks are a big beneficiary of that. trillion.
NII ex-markets was up $274 million or 1%, driven by the impact of balance sheet mix and securities reinvestment, higher revolving balances in card, and higher wholesale deposit balances, predominantly offset by lower deposit balances in banking and wealth management and deposit margin compression. NIR ex-markets was up $1.8
JP Morgan's quarterly profit fell, that is excluding some one-off gains from their stake in Visa, but their operating profits fell, and that's even as their revenue was higher than Wall Street's expected, and they had a nice jump in investmentbankingfees. As an investor and an owner of the stock, I'm absolutely OK with it.
I wanted to see the world, and whether it was investmentbanking, or basket weaving really had absolutely no bearing on my decision. And all these formally high performers are now just so big, they’re very happy collecting the managementfee and the performance fee matters less. MIELLE: Correct.
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