US banks post solid third quarter loan growth

Major US banks reported solid loan and deposit growth in the third quarter, but lenders are paying a premium to retain customer funds in a fiercely competitive, high-interest-rate environment. JPMorgan Chase, Citigroup and Wells Fargo all posted higher net interest incomes on Tuesday, defying concerns that soaring bond yields and elevated borrowing costs would stifle loan demand and trigger a flight in deposits. "The consumer remains one of the economy's most important sources of resilience though higher prices continue to weigh on consumer sentiment," a Wells Fargo executive said in a post-earnings call. Citigroup reported an 11 percent increase in average deposits and a 12 percent jump in average loans. Wells Fargo saw average deposits rise 10.7 percent, alongside an 11 percent jump in average loans buoyed by its consumer banking division. Meanwhile, JPMorgan, the largest US lender, reported a 4 percent rise in average deposits and a 2 percent increase in loans from a year ago. Despite resilient metrics, banks face mounting funding pressures. As US Treasury yields hit record highs in the third quarter, customers sought better returns elsewhere, forcing lenders to raise deposit rates to prevent outflows and squeezing their margins. This was exemplified by JPMorgan's deposit margin that fell to 2.78 percent...