Don’t bank on the banks

[Nadilapars]

 

As earnings season edges closer, investors are looking over the banking sector’s biggest names to assess their potential. 

JPMorgan (JPM) and Citigroup (C) release their figures first, followed by Wells Fargo (WFC) and Bank of America (BAC) then Goldman Sachs (GS) and Morgan Stanley (MS). 

US banks have benefited recently from a perceived likelihood of interest rate increases from the US Federal Reserve. However, much of these banks’ future performance will depend on the tax cuts that US President Donald Trump proposed recently, and the ability of his administration to get them through Congress. 

If passed, net income of the big six banks could rise $6.4 billion with Wells Fargo, Bank of America and JPMorgan the biggest beneficiaries, according to a recent Bloomberg report. 

However, Trump’s administration has been frustrated by Congress’ unwillingness to back the president on a number of policies that he has wanted to pass since coming into power. 

more detail : Don’t bank on the banks