JPMorgan Chase, Citigroup and Wells Fargo all reported solid third-quarter loan and deposit growth on Tuesday, October 13, 2026 — but are paying a steep price to retain customer funds in a fiercely competitive, high-interest-rate environment.
All three posted higher net interest income in the quarter, defying concerns that soaring bond yields and elevated borrowing costs would stifle loan demand and trigger deposit flight.
Growth with pressure
Citigroup reported an 11% increase in average deposits and a 12% jump in average loans; Wells Fargo saw average deposits rise 10.7% alongside an 11% jump in average loans, buoyed by its consumer banking division; JPMorgan reported a 4% rise in average deposits and a 2% increase in loans from a year ago.
But funding costs are biting. As US Treasury yields hit record highs in the third quarter, customers sought better returns elsewhere, forcing lenders to raise deposit rates and squeeze margins: JPMorgan's deposit margin fell to 2.78% from 2.79% a year earlier, while Wells Fargo's net interest margin on a taxable basis slumped to 2.43% from 2.61%.
Resilient consumers
On credit quality, analysts said there have been no significant cracks overall, suggesting households are managing their debt obligations — though Wells Fargo and Citigroup increased provisions for credit losses in the quarter. A Wells Fargo executive said on the post-earnings call that "the consumer remains one of the economy's most important sources of resilience though higher prices continue to weigh on consumer sentiment," while JPMorgan CFO Jeremy Barnum said internal data does not show consumers shifting away from discretionary items.
The macro backdrop remains tough: US consumer prices rose 3.4% in the 12 months through August, and September job growth slowed more than expected. Bank of America was set to report its third-quarter earnings on Wednesday, October 14.
Sources:
- Major US banks post solid third quarter loan growth, but see more competition for deposits — Reuters
All three posted higher net interest income in the quarter, defying concerns that soaring bond yields and elevated borrowing costs would stifle loan demand and trigger deposit flight.
Growth with pressure
Citigroup reported an 11% increase in average deposits and a 12% jump in average loans; Wells Fargo saw average deposits rise 10.7% alongside an 11% jump in average loans, buoyed by its consumer banking division; JPMorgan reported a 4% rise in average deposits and a 2% increase in loans from a year ago.
But funding costs are biting. As US Treasury yields hit record highs in the third quarter, customers sought better returns elsewhere, forcing lenders to raise deposit rates and squeeze margins: JPMorgan's deposit margin fell to 2.78% from 2.79% a year earlier, while Wells Fargo's net interest margin on a taxable basis slumped to 2.43% from 2.61%.
Resilient consumers
On credit quality, analysts said there have been no significant cracks overall, suggesting households are managing their debt obligations — though Wells Fargo and Citigroup increased provisions for credit losses in the quarter. A Wells Fargo executive said on the post-earnings call that "the consumer remains one of the economy's most important sources of resilience though higher prices continue to weigh on consumer sentiment," while JPMorgan CFO Jeremy Barnum said internal data does not show consumers shifting away from discretionary items.
The macro backdrop remains tough: US consumer prices rose 3.4% in the 12 months through August, and September job growth slowed more than expected. Bank of America was set to report its third-quarter earnings on Wednesday, October 14.
Sources:
- Major US banks post solid third quarter loan growth, but see more competition for deposits — Reuters
