According to the Institute of International Finance, an industry group, US banks are likely to report “record levels” of earnings in 2021 as the US economy recovers and financial markets continue to perform well.
IIF CEO Tim Adams said Friday that improving the economy would increase bank lending and commission income, and boosting investment activity would increase trading income.
“It’s a good year for banks because I think we’ll see record returns this year. Look at it in bank stocks and at least for the rest of the year,” Adams told CNBC.Street sign asia“
Mateo Colombo | Digital Vision | Getty Images
US bank stocks rose this year.The share of major banks is Goldman Sachs As of Thursday’s closing price, this year has risen 40.8% so far. Bank of America And JP Morgan Increased by about 40.4% and 29.3%, respectively.
Many of the largest US banks last month Reported first quarter earnings This exceeded analysts’ expectations on some financial indicators.
Banks are improving as the US economy recovers from the Covid-19 pandemic downturn. The economic recovery has spurred concerns among investors that accelerated inflation could force the Federal Reserve Board (FRB) to tighten monetary policy sooner than expected.
US Consumer Price Index April increased by 4.2% year-on-year — Significant increase since 2008.
“I think they’re driving this economy hot. They’re going to heat it for a very long time, and they’ll wait for inflation and how long inflationary pressure will last rather than temporarily. That’s what I am now. That’s what we’re seeing, “said Adams.
The Fed had previously said the inflation surge was temporary when compared to last year’s pandemic economy. The central bank also suggested keeping monetary policy easing.
According to the IIF, U.S. banks are poised to achieve “record levels” of revenue in 2021
Source link According to the IIF, U.S. banks are poised to achieve “record levels” of revenue in 2021