Top US Banks Eager for Relief From Rate Pressure After Fed Hikes

The largest US banks spent 2023 grappling with higher interest rates that made it more expensive to hold on to deposits. Now they’re likely to gain a benefit with borrowing costs expected to stabilize in the months ahead.

When Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kick off the industry’s fourth-quarter earnings reports on Friday, their results are likely to show that net interest margins felt continued pressure from higher funding costs in the final three months of the year. But that likely won’t faze investors, who will instead be parsing through the firms’ predictions for what they expect from the Federal Reserve in 2024.