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The bank's efforts to trim noninterest expenses and grow its fee revenue helped ease some of that pressure, with its overall profitability rising to $4.9 billion between April and June, up from $4.6 billion in the first quarter.
But the megabank underperformed analyst expectations on its net interest income, which fell below $12 billion for the first time since 2022.
One driver was the "tepid" pace of loan growth that
"We've seen continued migration into higher-yielding alternatives in the consumer business," Mike Santomassimo,
One positive is that the pace of that migration "has slowed and continues to slow," Santomassimo said. Interest expenses climbed 3.3% during the quarter, compared to 5.4% in the first quarter and 12% a quarter before.
The bank stuck to its prior guidance that net interest income would fall between 7% to 9% in all of 2024, though it did say Friday it expects to be on the upper end of that range.