Yeah, like that's just not working for the banks
Citizens Financial profit slips on weaker interest income
Citizens Financial (CFG.N), opens new tab on Wednesday reported a lower first-quarter profit as it earned less from customer interest payments.
Banks in the United States have been bracing for a turnaround in gains from interest income, as they paid more to retain customers who are in search of higher-yield securities, while loan growth declines.
Citizens Financial’s net interest income (NII) - the difference between what it earns on loans and pays for deposits - tumbled 12% to $1.44 billion in the first quarter compared with the previous year
Larger rivals Bank of America (BAC.N), opens new tab and Wells Fargo (WFC.N), opens new tab also posted similar declines in NII in recent days.
Period-end loans and leases fell 7% to $143 billion in the quarter ended March from a year ago.
And USB is one of the more conservative, risk wise, banks out there
Until very recently local banks in Downeast Maine were paying .02% interest on savings and money market accounts.
Charles Schwab, T. Rowe Price etc. have been 5%. Most of the local banks have started to pay more competitive rates.
And note .02% is Not 2%. it is (2/100)*1 % or .02*.01 = 0.0002