For Big Banks, Lower Rates Could Mean the End of Profit Blowouts
- Second-quarter results offer look into rate impact on revenue
- Investment-banking fees seen falling 21% from year earlier
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Will the pain from lower interest rates match all the angst about bank earnings?
Investors will find out next week, when the biggest U.S. banks report second-quarter results. Falling interest rates have sparked concern that net interest income -- the money banks make from customers’ loan payments minus what they pay depositors -- will suffer. NII accounts for more than half of the biggest lenders’ revenue.