US Banks Announced Q2 Earnings-what does it tell us
Q2 Earnings are upon us. Let's decipher what is expected towards the end of the year.
All top banks navigated the Feds rigorous annual stress tests, demonstrating their ability to endure severe economic downturns without needing government intervention.
Most of the the banks, JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, and Wells Fargo decided to raise their dividends.
The more important news to me was how the regional bank weathered in the reporting quarter. PNC did great and Charles Schwab underperformed. The depositor's credit quality is better than expected in Q2, but we are not out of the weeds yet, as the loan volume that the regional banks originate is 60-70% less than before.
High interest rates translate to higher depositor acquisition costs.
Net interest margin, a key measure of banking profitability that takes into account earnings from interest on loans and payments on deposits, also contracted across the industry for the third straight quarter.
Depositors are moving deposits to larger banks.
I expect most of the regional banks were actively working to lower expenses to counter interest income headwinds.
I still believe that some regional banks will not survive by the end of the year.
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Q2 Earnings are upon us. Let's decipher what is expected towards the end of the year.
All top banks navigated the Feds rigorous annual stress tests, demonstrating their ability to endure severe economic downturns without needing government intervention.
Most of the the banks, JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, and Wells Fargo decided to raise their dividends.
The more important news to me was how the regional bank weathered in the reporting quarter. PNC did great and Charles Schwab underperformed. The depositor's credit quality is better than expected in Q2, but we are not out of the weeds yet, as the loan volume that the regional banks originate is 60-70% less than before.
High interest rates translate to higher depositor acquisition costs.
Net interest margin, a key measure of banking profitability that takes into account earnings from interest on loans and payments on deposits, also contracted across the industry for the third straight quarter.
Depositors are moving deposits to larger banks.
I expect most of the regional banks were actively working to lower expenses to counter interest income headwinds.
I still believe that some regional banks will not survive by the end of the year.
Our social networks:
• Youtube
• Protitleusa.com