KeyCorp and Comerica forecast a 2024 drop in interest income due to higher borrowing costs and lower loan demand.

KeyCorp and Comerica forecast a 2024 drop in interest income due to higher borrowing costs, lower loan demand, and stricter lending standards. This follows concerns raised by larger US banks during earnings season. Inflation and the Fed's expectation of no rate cuts until cooling prices occur contribute to potential borrowers delaying loans. The net interest margin is projected to fall 11% for both banks in 2024 compared to the previous year.