Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
I put FCNCA’s net interest margins against the US 1-year and 5-year yield so that you can have an idea of the impact. The net interest margins fluctuate but what affects things is more than interest alone.
It is also interesting that with the amount of acquisitions, this itself remain as consistent.
But it has to be said that:
- When interest rate rises, the banks earn more money.
- When interest rate falls, the banks earn less money.
Which is a weird thing why everyone is harping for the Fed to cut rates as many times because it will benefit the regional banks. I guess it is the amount of unrealized losses of the assets held on their balance sheet. But I wonder if that is a bit myopic.
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