Higher payouts on deposits to retain customers from chasing high-yielding alternatives have resulted in an industry-wide contraction in net interest margins for the banks that had until recently benefited from the U.S. Federal Reserve's rate hikes.
Most U.S. banks are also paying the Federal Deposit Insurance Corporation - or FDIC - a fee to refill its insurance fund, used to safeguard customer deposits in case of bank failures.
Truist reported a quarterly loss because of one-time charges and weaker net interest income.
KeyCorp saw profit sink 92% while earnings fell 37% at M&T Bank and 27% at Northern Trust.
KeyCorp's CEO told Reuters that borrower appetite is "muted," adding, quote, "There is not a lot of loan demand, there are not a lot of transactions."
Its stock dropped 5% in afternoon trading.
