Rising deposit costs are not unique to any bank today, even giants such as JPMorgan Chase and Wells Fargo. But some banks, due to the nature of their business, may feel the effects more than others.
State Street Trust Bank beat analysts’ net second-quarter net income forecasts in its Friday report, but investors could focus on a key measure of loan and investment income: net interest income. JPMorgan and Wells Fargo beat analysts’ forecasts for net interest income, as did Citigroup, but State Street is slightly below consensus, according to Visible Alpha.
While JPMorgan and Wells Fargo rose for most of Friday’s session, State Street shares were down about 10%. Trust banks Northern Trust and Bank of New York Mellon are also down sharply, as is the KBW Nasdaq Bank Index.