Zacks Investment Management’s Post

U.S. banking giants are poised to raise their third-quarter dividends after clearing the Fed’s stress test, showcasing their resilience amid market uncertainties. Brian Mulberry, Zacks Investment Management Client Portfolio Manager, noted, "Banks are going to remain conservative on capital as uncertainty over the Basel proposal remains." Read more in @Reuters: https://lnkd.in/g2QrjWhg #Banking #Finance #MarketTrends 

Wall Street Expects ‘Cautious’ Payouts After Bank Stress Tests LINK: https://lnkd.in/e5pM9bR4 #BankingAndFinanceNews #Banking #Regulations Please Repost

As large US banks release their second-quarter results, it’s a closely watched earnings season showing that results are varied while institutions bounce back from a period of industry turmoil. With some positive movement in consumer-facing services, deposit costs and investment banking continue to be a challenge. Yet, banks say the economy “continues to be resilient.” Read more: https://loom.ly/oneBJr0 #economy #bankingindustry #finance #bankingsector #financialnews #CoinstarForFinancial

Wall Street Expects ‘Cautious’ Payouts After Bank Stress Tests LINK: https://lnkd.in/esyArUkJ #BankingAndFinanceNews #Banking #Regulations Please Repost

Q2 earnings calls for American incumbents, not surprisingly, featured lots of discussion around the US Fed’s plans to boost capital requirements across a range of products and trades, possibly including non-interest revenue. While the specifics and timing of any changes are still unknown, if this comes to pass it will have a significant impact on almost every part of banking across the US. #BankingIndustry #BankingTrends #BankingRegulation

What Friday’s results showed is that big banks like JPMorgan (JPM) and Wells Fargo (WFC) that have sprawling consumer franchises are performing well because they are able to charge more for their loans and benefit from a surge in credit-card borrowing by Americans who still have extra money. "The consumer is in good shape," JPMorgan CEO Jamie Dimon told analysts. “They are spending down their excess cash.” But Friday also revealed that corporate clients are not providing as much of a lift, which is hurting the banks that rely more heavily on them. CEOs remain cautious about everything from the direction of interest rates to relations with China to the larger US economy, dampening the optimism needed to buy other companies, go public or take on more debt. "Corporates are pretty cautious," Fraser told analysts Friday, citing the prospect of another Federal Reserve interest rate hike, tensions with China and concerns about limited economic growth. "I think clients have been trying to understand and get their arms around both the macro and the market outlook for a while. I think they now seem to accept the current environment is the new normal and are beginning to position themselves globally." This caution was most evident in the performance of Citigroup’s corporate and investment banking unit, which helped push overall profits at the bank down 36%. Investment banking revenue fell by 24% in the second quarter, to $612 million. It wasn’t just Citigroup, though. Even JPMorgan, which churned out massive profits in its consumer business, saw investment banking fees fall by 6% from a year ago, to $1.5 billion. Trading, which was stronger earlier in the year, also turned weaker. Citigroup’s revenue from that business fell 13%. JPMorgan’s revenue associated with trading equities and fixed income also dropped. “Most of the investors stayed on the sidelines” during the second quarter, Fraser said. https://lnkd.in/eHkKRC5x

Exciting news for Wall Street banks! The recent projection of a revival in dealmaking is expected to significantly bolster the financial results. The Financial Times reports this anticipated upturn, indicating a positive shift in the industry. This development is sure to impact the banking landscape and pave the way for improved performance. #DealmakingRevival #FinancialTimes #WallStreetBanks https://ift.tt/JxB7DFk

"SVB’s institutional challenges reflect a larger and more widespread systemic issue: The banking industry is sitting on a ton of low-yielding assets that, thanks to the last year of rate increases, are now far underwater — and sinking". "Everyone on Wall Street knew that the Fed’s rate-hiking campaign would eventually break something, and right now that is taking down small banks" These are two clips from the article of Cnn. The question is: does Fed consider exactly the impact of its last two years of monetary politics on the Us economic system? #Irresponsible Fed https://lnkd.in/ees-xCHk

The banking landscape is changing, and smaller banks need to adapt to avoid major trouble! Moody’s recent credit rating downgrades and market challenges should be a wake-up call. 🚨 The times of easy financing and low-interest rates are behind us. Small and regional banks must revamp their stress testing, shore up portfolios, and diversify to mitigate risk. ✔️ With a potential economic downturn on the horizon, preparation is crucial. Here's how ⬇ #SiliconValleyBank #BankingCrisis #downturn #stresstesting

The banking landscape is changing, and smaller banks need to adapt to avoid major trouble! Moody’s recent credit rating downgrades and market challenges should be a wake-up call. 🚨 The times of easy financing and low-interest rates are behind us. Small and regional banks must revamp their stress testing, shore up portfolios, and diversify to mitigate risk. ✔️ With a potential economic downturn on the horizon, preparation is crucial. Here's how ⬇ #SiliconValleyBank #BankingCrisis #downturn #stresstesting