Net interest income for the three largest US banks totaled $56.5 billion in Q3, marking a fifth consecutive quarter of record highs, though net interest margins are under pressure and trading and underwriting activities have cooled.

According to Wall Street Insights, JPMorgan Chase, Citigroup, and Wells Fargo collectively reported $56.5 billion in net interest income for the third quarter, marking the fifth consecutive quarter of record-breaking performance. However, the high-interest-rate environment has compelled banks to raise deposit rates, putting pressure on net interest margins. Wells Fargo's taxable net interest margin, for instance, narrowed to 2.43% from 2.61% in the same period last year, and JPMorgan Chase's deposit spread also saw a slight decline. Concurrently, a global bond market sell-off, stock market volatility, and the Iran conflict, which has driven up energy prices and inflation, led to weaker trading activity in fixed income, foreign exchange, and commodities. Corporate IPOs, bond issuances, and M&A deals may be postponed, putting pressure on bank underwriting fees. JPMorgan Chase's quarterly earnings missed expectations for the first time in nearly three years, Wells Fargo's net interest income fell short of expectations, and Citigroup's trading business weakened quarter-over-quarter. On Tuesday, the three banks closed down 0.86%, 3.1%, and 5.6%, respectively.