US bank results face pressure from higher rates and inflation

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  Major US banks are preparing to report third-quarter results as higher bond yields and inflation put pressure on their earnings outlook.

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  JPMorgan Chase, Goldman Sachs and Citigroup are due to report on Tuesday, followed by Bank of America and Morgan Stanley on Wednesday.

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  Analysts expect profits to fall from the second quarter as some exceptional trading, dealmaking and financing revenue fades, although annual profits are still expected to grow at most major banks.

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  The five largest US banks have lost about $270 billion in market value from their summer peaks, while the S&P 500 bank index fell about 7.5% in the previous month.

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  Markets are also awaiting US inflation and retail sales data for clues about interest rates, borrowing costs and economic activity.

Who

Major US banks, including JPMorgan Chase, Goldman Sachs, Citigroup, Bank of America and Morgan Stanley.

What

The banks are due to report third-quarter results amid pressure from higher rates, inflation and funding costs.

When

The reports are scheduled for the following week: three banks on Tuesday and two on Wednesday.

Where

United States.

Why

The results may show how higher borrowing and funding costs affect bank earnings, lending, consumers, businesses and market activity.

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