Richard Beales talks to Breakingviews columnists about JPMorgan and Wells Fargo’s decent Q2 earnings, and how recent interest-rate increases are affecting the two mega-banks.
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To take him over the world's voted to big US banks reported earnings -- -- -- beating expectations a little bit. For any decent quarter but we've seen -- back up in interest rates we kind of got slow economic growth not everything is rosy but people would -- That's not sleeping on that but boasts thanks he has seemed pretty confident else to happen in the future of the so you know -- Lundberg modest modeling -- nonetheless the Rutland gross. Economy is recovering sort of sex is going to be good. And may be there right maybe interest rates going up what effect that's what's going to basements while percentage point. It may be -- speaks few people but it should be fine but. But she -- get hit and enact this in you can -- -- -- as -- yeah -- its -- thing. Depending talking about part series -- mortgages and a space that it hasn't hit as much as people soul. Blanche because a lot of mortgages were being revenue and dozens of months to get and you move again -- takes a team. Think it was hello all strong -- -- rates were released. Right remain aggressive and that's that little in the pipelines that does help them yet and those fears are basically -- -- -- -- stay at these levels of short replies are here you know are gonna come down and that's that's right and it could get a again rightly so -- to include a volatility with. It speed -- and the stuff that. You know that it you know historically they've been the tightness of it. I think it mean for me alone right and you look no longer felt pretty tap that particular when you see both banks taking a lot to -- right so pretty usually under the current circumstance will stick penalties and 10% increase in deposits here. Incidentally -- at a 3% increase in -- It's a. Fast if and I think that what is one of the one of the issues is like in historically speaking when rates go up. In the economy grows a lot faster right now remember the regular public because because of that right but that's not much happening right now. But I think you know for me there's a certain amount of skepticism which I think has been justified that. You know this loan growth that we've all been waiting for its like unless you really get. Near the economy really churning which again but with rates going higher that that becomes unclear some of those assumptions about loan growth may be a little bit negroes -- I didn't if you look at some of that that the figure is a comparison and -- -- -- it most part I'm -- was and is a 12% missing allotment purchase mortgages which -- New homes being -- but -- for us to respond which is great -- 2% increase signals that's. That's great but overall vehicle that doing I think that their -- deposit ratio is 62% pulls the other -- under 66%. To post excellence said they're not using mice that a lot of that deposits yet so morally relate to -- as our -- you -- -- running off. Which are running different rates from 35 you -- little so the general profitable. You don't a lot of Lindsay made in the past -- welcome all let's -- lynch made the policy you'll -- -- below it. And thank you go. Relatively -- Grayson glanced at best but how much does that offset what humans except. They -- hopefully like about how general stars as this but. Is it pretty redacted Connecticut will leave at that we have more bank earnings coming. Next week you'll keep -- a list that will have more breaking news view element and it.