With the Federal Reserve cutting its policy rate for the first time in three years in Q3, banks are at a turning point. Net interest income will come under pressure, but lending, capital market activity,

Year-over-year earnings at most large U.S. banks likely fell in the third quarter as the amounts they had to pay to secure deposits continued rising. But with the recent Fed rate cuts, things may look brighter in the future.

Two of the nation’s biggest banks will kick off earnings season for lenders Friday when JPMorgan Chase and Wells Fargo report results. It was an unusual quarter for the U.S. financial system, marked by volatile markets and the Federal Reserve’s first interest-rate cut in more than four years.

Investors have questions about how a new Federal Reserve rate-cutting cycle will affect the biggest US banks, and they will be looking for some answers as third-quarter earnings season begins Friday.