Big Banks and Customers Continue to Feel Pressure From Higher Rates

The fight to rein in inflation continues to weigh on big banks. Higher interest rates crimped their profits and left more consumers struggling to keep up with elevated borrowing costs. The biggest U.S. bank and another major bank both reported a drop in second-quarter profit. Another bank posted a rise in profit, partly due to cost-cutting measures, but set aside more provisions for potential losses in its credit-card business.