JPMorgan Stock And 2 US Banks Built For Higher Interest Rates

Fed rate hikes are back on the table, inflation is still above target, and suddenly deposit rich US banks are front and center again. Higher policy rates can reshape who earns more on cash and who pays more on loans, which creates openings and risks for anyone watching net interest margins. This piece walks through 3 US Deposit-Rich Retail and Commercial Banks screener stocks that appear particularly exposed to this new rate path.

The three banks highlighted below are only a starting sample, and the full screen surfaced 474 more large US deposit focused institutions with equally compelling narratives that are not covered here. To go deeper, head straight into the US Deposit-Rich Retail and Commercial Banks (Net Interest Margin Beneficiaries) screener to identify, filter, and analyze your own highest conviction ideas.

Wells Fargo (WFC)

Overview: Wells Fargo is a large US retail and commercial bank that gathers low-cost deposits and turns them into loans and financial services.

Operations: Most revenue comes from US$35.1b in Consumer Banking and Lending, US$20.2b in Corporate and Investment Banking, and US$17.3b in Wealth and Investment Management, almost entirely in the United States.

Market Cap: US$268.3b

Wells Fargo sits near the center of this screener theme, with a huge US deposit base that can strongly influence how rising policy rates feed into net interest income.

"The removal of the asset cap and resolution of multiple regulatory orders unlocks Wells Fargo's ability to aggressively grow its balance sheet, including deposits, loans, and trading assets, after years of constraint. This may result in higher revenue and earnings growth over the coming quarters and years."

The real swing factor for Wells Fargo will be how one unseen pressure shapes the balance between deposit costs and future lending margins.

That pressure point sits at the heart of the full narrative for Wells Fargo, which maps how Wells Fargo’s earnings profile could accelerate or stall as deposit pricing and loan yields decouple.

PNC Financial Services Group (PNC)

Overview: PNC Financial Services Group is a large US bank that uses a broad deposit base to support retail, commercial, and wealth lending.

Operations: PNC generates about US$15.5b from Retail Banking including residential mortgages, US$11.8b from Corporate & Institutional Banking, and US$1.8b from Asset Management.

Market Cap: US$96.8b

PNC Financial Services Group matters for this deposits and net interest margin theme because its everyday checking accounts and business balances fund a sizeable loan book that is sensitive to each Fed move.

"PNC expects positive operating leverage by maintaining well-controlled expenses while aiming for record net interest income (NII) growth of 6% to 7% for 2025, potentially boosting future earnings."

What really moves the needle from here is how one unresolved shift in deposit pricing versus loan yields plays out across the franchise.

That pricing tug of war is exactly what the full narrative for PNC Financial Services Group unpacks, showing where PNC Financial Services Group could see accelerating returns or hidden pressure on future earnings.

JPMorgan Chase (JPM)

Overview: JPMorgan Chase is a global banking group whose large US consumer and commercial deposit base fuels lending, payments, and wealth services.

Operations: JPMorgan Chase generates about US$67.7b from Consumer & Community Banking, US$85.4b from Commercial and Investment Bank, and US$25.8b from Asset & Wealth Management, with smaller corporate items.

Market Cap: US$930.7b

For a Fed hiking cycle where deposit rich lenders can reshape what they earn on cash and loans, JPMorgan Chase is the heavyweight example many investors watch first.

"Higher Payments revenue (up 3% YoY) and ongoing card fee/NII growth (Card revenue up 15% YoY with 9% growth in card outstandings and strong new card acquisition), reflect effective digital banking expansion; ongoing investment and leadership in digital platforms are expected to drive lower operating costs, stronger customer acquisition, and improved net margins."

What really matters from here is how one unseen pressure affects the balance between that deposit funded engine and future profitability.

That pressure makes the full narrative for JPMorgan Chase a useful next read, highlighting where JPMorgan Chase’s deposit engine could be quietly masking both upside and rate risk.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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