What BofA, Citi, and Goldman earnings signal for big banks

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Goldman Sachs News

Nathan Stovall,Brad Smith,Bank Of America

Bank of America (BAC), Citigroup (C), and Goldman Sachs (GS) reported earnings before Tuesday's opening bell. Results from big banks show a rise in profit...

) reported earnings before Tuesday's opening bell. Results from big banks show a rise in profit from a year ago, supported by investment banking strength. Nathan Stovall, S&P Global Market Intelligence director of financial institutions research, joinson Morning Brief to break down what investors need to know about the results and what they signal about the wider sector.

Overall, Stovall says third quarter results suggest “the picture is getting a little bit better, and if you think about where we were starting heading into this quarter, there was a lot of fear there of how ugly that could get and whether or not there would be improvement soon. And I think these banks are guiding that we are going to see better days ahead.

We're actually seeing their corporate clients willing to take a little bit more risk, pursue more deals stronger in particular on things like debt underwriting. The good news there is we're seeing improved guidance from the banks that have reported and from the calls we've heard we're, we're hearing that the customers not pushing as much for higher yielding accounts.

So it, it, as I said, it's a bit of a mixed bag, but, but I think the picture is getting a little bit better. II I think that's really well said it is going to be complicated because it's not so much that we're going to get a lot of growth or that things are going to get a lot better.And, and that's one of the weird things about this quarter in particular is that it's not that it's this barn burner of a quarter.

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