Bloomberg reported that the six largest U.S. lenders, including JPMorgan Chase and Wells Fargo, may post an 11% drop in first-quarter profit, threatening a rally that has pushed bank stocks 19% higher this year.
Bloomberg said the banks will post $15.3 billion in net income when adjusted for one-time items, down from $17.3 billion in last year’s first quarter, according to a Bloomberg survey of analysts. Trading revenue at the biggest lenders is projected to fall 23% to $18.3 billion, according to Morgan Stanley analysts, who didn’t include their firm or Wells Fargo, Bloomberg notes.
Bloomberg quotes an analyst at Nomura Holdings as saying, “U.S. lenders, struggling to expand in commercial banking years after the housing collapse, haven’t matched last year’s overall results, even as bond and equity markets strengthened. Making matters worse, loan balances increased less than the economy, bucking a trend in previous recoveries.”
To read the full Bloomberg story click here.
No tags available
The last edition of Dispatches from the Trenches discussed the importance of collateral descriptions in security agreements and financing statements as well as the use of collateral types versus more specific descriptions. This edition focuses further on helpful techniques and... read more
I went to college in the 1960s and graduating with a bachelor’s of business administration (BBA) in public accounting. I got a job as an internal auditor with CIT, and moved on to Arthur Andersen where I passed the CPA... read more