Bank earnings show a 'tale of two cities' — three analysts explain what that means for 2021

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Bank earnings show a 'tale of two cities' — three analysts explain what that means for the next year (via TradingNation)

Experts weighed in on the varied outlooks for different banks.

Marty Mosby, director of bank advisory and strategic services at Vining Sparks, says to look forward to a turnaround from Wells Fargo and"From a credit standpoint and survivability, these banks are well ahead of schedule for any recession we've had before. The other side of this is from a revenue standpoint. Fees have offset the weakness in net interest income that's just been eroding throughout the year, and will continue to be headwind as we go into 2021...

"I think you are seeing a tale of two cities here. JPMorgan was able to release 72 cents of reserves. Now, they had the wherewithal to do that because management acted very aggressively when not much was expected of the sector, but also because of their diversified position, using a lot of those unforeseen gains from capital markets, trading and investment banking. I think it's still going to be a tale of two cities for the next few months.

 

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TradingNation It means banks will be better of under Biden and Harris because they can rise prices on they services to the American customers without warning them. Increase they profit over time.

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