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  1. Eli Lilly and Company and Wells Fargo are major players whose market performance is influenced by FED rate decisions and the banking sector's net interest margin.

Fed Rate Hike Increases Deposit Costs, Squeezing Bank Margins

2 reports, 1 independent Updated Sep 20
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New informationRepeats or wire copies

AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 1 outlet

After the Federal Reserve delivered its first interest rate hike since 2023, banks are reporting increased deposit costs and tighter loan pricing. Huntington Bancshares Incorporated lowered its 2027 EPS guidance to the range of $1.75-$1.83 and reduced its 2026 net interest income growth projection to roughly 35%. This pressure caused Huntington Bancshares Incorporated shares to drop 5.55%.

From insidermonkey.com

Why it matters

Some supportBrind's analysis of the reports

While rate increases eventually boost asset yields, banks must immediately offer higher deposit yields to retain customer balances, which squeezes net interest margins in the near term. The Federal Reserve's action makes the operating environment more unfavorable for financial institutions in the short term.

The market performance of major financial institutions is influenced by Federal Reserve rate decisions and the banking sector's net interest margin.

From insidermonkey.com

Who's involved

  • FEDThe central bank that implemented the interest rate hike.
  • Wells FargoAn American multinational banking and financial services company affected by rate decisions.
  • JPMorgan ChaseAn American multinational banking and financial services holding company competing in the market.
  • Morgan StanleyA U.S. investment bank exposed to systemic margin pressure.

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • JPMorgan ChaseSpeculative

    JPMorgan Chase might see its core profitability impacted as increased deposit costs squeeze net interest margins.

  • Morgan StanleySpeculative

    Morgan Stanley could face systemic margin pressure as a major competitor in the financial services sector.

How it developed

Newest first. Tap a step to see who reported it.
  1. Major financial institutions are warning of increased deposit costs and charge-offs following the recent FED rate hike.Sub-event
  2. Fed rate hike leads to increased deposit costs for banks like Wells Fargo.1 source

Keep exploring

Part of

Eli Lilly and Company and Wells Fargo are major players whose market performance is influenced by FED rate decisions and the banking sector's net interest margin. All 1 developments

The entities involved

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Coverage

Newest first; wire copies grouped
1 more outlet ran the same wire story