Charles Schwab's profit drops on higher interest payouts
Yahoo Finance - 2024-04-15T12:56:06.000Z

Rate hikes by the U.S. Federal Reserve have compelled companies like Schwab to increase the interest they pay on deposits - a crucial source of capital that is used to invest in interest-earning assets and give out loans. Schwab has also taken on debt to bolster its funding, which hit interest revenue further. The interest rate on its borrowings from the Federal Home Loan Bank was 5.27%, compared with 5.05% a year ago.

In related news

JPMorgan’s Profit Rises, but Higher Interest Rates Start to Sting
first-quarter earnings rose 6%, but the bank said Friday that higher interest rates are starting to dent its business and projected muted...
- Related Articles
- In News
- From WSJ
- 2024-04-12T11:48:00.000Z
KeyCorp profit falls as higher deposit costs hurt interest income
KeyCorp reported a 33.5% drop in first-quarter profit on Thursday as its net interest income was eroded by higher deposit costs and elevated interest rates kept borrowers on the sidelines. U.S. banks have been grappling with increased funding costs as elevated interest rates prompt customers to move cash from banks to safe-haven higher-yielding alternatives like money-market funds for better returns. Net interest income (NII), or the difference between what a bank earns on loans and pays out...
- Related Articles
- In News
- From Yahoo Finance
- 2024-04-18T11:36:01.000Z
Wells Fargo profit falls as customers cash in on higher interest rates
Profit at Wells Fargo fell as the bank reported a hefty fall in interest income reflecting the need to pay out more to attract depositors.
- Related Articles
- In News
- From @cityam
- 2024-04-12T12:16:29.000Z

In related news

JPMorgan’s Profit Rises, but Higher Interest Rates Start to Sting

KeyCorp profit falls as higher deposit costs hurt interest income

Wells Fargo profit falls as customers cash in on higher interest rates