JPMorgan Chase & Co. (JPM), Wells Fargo & Co (WFC), BB&T Corporation (BBT): Five Important Charts About Banks

5. Equity dropped across the board
The one piece of somewhat disappointing, if not wholly unexpected, news was that equity capital declined by $14 billion across the industry. While rising interest rates, which started higher at the end of May, are good for a bank’s net interest margin, they wreak havoc on the value of securities that banks hold in their investment portfolios.

For example, Citigroup Inc. (NYSE:C) saw its other comprehensive income decline by nearly $3 billion, from a negative $17 billion in the first quarter to a negative $19.9 billion in the second quarter. And while U.S. Bancorp wasn’t hit as hard, it too suffered a decline in OCI of more than $300 million. In both cases, the losses offset otherwise accretable earnings at the institutions.

The article 5 Important Charts About Banks originally appeared on Fool.com and is written by John Maxfield.

John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

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