This Took Some Bank Investors by Surprise

This Took Some Bank Investors by Surprise

Coming into earnings season, most analysts and commentators expected banks to benefit from the recent interest-rate increases, as the Federal Reserve has boosted short-term rates three times over the past 12 months. Yet, at least at some of the nation's biggest banks, that wasn't necessarily the case.

Image source: Getty Images.

You can see this in the results of JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC). Both banks had solid quarters, but both banks also reported sequential declines in their net interest margins, which measures the yield on their assets after backing out the costs of deposits and other types of debt.

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Source: Fool.com