“With all these banks, the question is: Do we see a trough in net interest income in the second half or in early 2025? And do we start to see growth again in net interest income next year? That's a critical question because if you do start to see net interest income growing, which is the biggest revenue component of banks, you start to get an outlook that allows banks to post positive operating leverage and improving EPS momentum and ROTC momentum,” Martinez tells Yahoo Finance.
So we heard from JP Morgan and Wells Fargo and the takeaway there seemed to be that net interest income was perhaps not the sort of thing dragging them down that investors might have expected with rates coming down.Um I think, yeah, I think that is the probably the key debate in the in the sector right now.
Yeah, look, I think one of the takeaways from JP Morgan's results was that we had, you know, really strong investment banking results and they, you know, it, it, it, you know, it's one bank.Uh and, and you you know, you have to caution um a little bit about drawing conclusions from one report, but JP Morgan had 15% or talked about 15% year on year growth in IB about a month ago and they delivered 31% highlighting that late in the quarter.
Do you think investors should be more focused on, say a Morgan Stanley and a Goldman Sachs than some of the other big banks?Um, I, I, we upgraded Morgan Stanley in fact, about a week and a half ago, um, for, for a number of reasons. And I think Goldman and Morgan Stanley, which we both recommend as buys are going to be, you know, uh primary beneficiaries.
Uh there is a uh a lot of room for multiple expansion um and very strong book value growth over the next 2 to 3 years a lot to dig into and we get more of these results. Michael Chandler has shifted his focus from Conor McGregor to Charles Oliveira, but still expects an eventual grudge match with the Irish superstar.