Wall Street bank earnings under pressure after crisis

Most Wall Street banks are likely to report lower quarterly earnings and face a dour outlook for the rest of the year, with last month’s regional banking crisis and a slowing economy expected to hurt profitability.

Earnings per share for the six biggest U.S. banks are expected to be down about 10% from a year earlier, analyst estimates from Refinitiv I/B/E/S show. Banks start reporting results on April 14.

Access to cheap deposits, which swelled for bigger banks as savers fled smaller lenders in the wake of Silicon Valley Bank’s collapse last month, likely boosted net interest income for the largest banks, analysts said.

JPMorgan Chase & Co (JPM.N), the largest U.S. bank, is likely to come out ahead of the pack as its net interest margin – interest earned on loans versus interest paid to depositors – was higher than some of its peers, analysts said.

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