Major U.S. banks are expected to report stronger profits next week due to trading and investment banking. Economic uncertainty over U.S. tariff policies remains high. Investment banking activity has picked up, with dealmakers more optimistic. Bank EPS estimates range from 0.86 to 9.53, according to LSEG. Market revenue expected to climb.
Banks likely to report low-to-mid single digit percentage gains in net interest income. Resilient consumer and business financial health means smaller loan loss provisions. Analysts expect loan demand to improve. Banks benefit from deregulatory regime under President Trump. Investors will focus on capital deployment plans.
JPMorgan Chase projected to report 5% increase in EPS, outlook on NII, loan growth, and investment banking is key. Bank of America EPS to rise nearly 4%, with higher NII but lower investment banking fees. Citigroup’s EPS predicted to improve by 5%, driven by capital markets. Wells Fargo expects slightly lower operating expenses and flat loan loss provisions. Goldman Sachs likely to see nearly 11% increase in EPS. Morgan Stanley’s EPS estimated to rise over 7%.
Read more at Yahoo Finance: US bank profits to climb on stronger trading, investment banking