After achieving their best quarter since 2021, major US banks are about to begin their earnings reports, following a 23% rise in the US bank stock index last quarter. Bank stocks rebounded in late October 2023, as investors grew optimistic that the Federal Reserve would stop hiking interest rates without causing a recession. Attention is now turning to the possible relaxation of these policies and how it will affect banks' loan portfolios, deposit rates, and overall business operations. Financial companies are anticipated to report significant payments, including Citigroup's expected $1.7 billion expense, to the FDIC due to last year's regional bank failures.
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00:00 It's Benzinga and here's what's on the block. After achieving their best quarter since 2021,
00:04 major US banks are about to begin their earnings reports following a 23% rise in the US Bank Stock
00:09 Index last quarter. Bank stocks rebounded in late October of 2023 as investors grew optimistic that
00:15 the Federal Reserve would stop hiking interest rates without causing a recession. Attention
00:19 is now turning to the possible relaxation of these policies and how it will affect banks'
00:22 loan portfolios, deposit rates, and overall business operations. Financial companies are
00:27 anticipated to report significant payments, including Citigroup's expected $1.7 billion
00:32 expense to the FDIC due to last year's regional bank failures. Hedge funds have been selling
00:36 shares in the financial sector and there have been net sales from institutions and
00:39 retail clients as well. For all things money, visit Benzinga.com.