'This is just the beginning' for bank profit growth: CFRA analyst
The financials sector is showcasing a strong earnings performance this season, as major banks Bank of America (BAC), Morgan Stanley (MS), Citigroup (C), JPMorgan Chase & Co. (JPM), Goldman Sachs (GS), and Wells Fargo (WFC) reported a combined 19% increase in net income for 2024. CFRA Research Director of Global Fundamental Research Ken Leon joins Market Domination to offer his analysis on the banking industry’s outlook. “With a US economy growing 2.5%, there's two sides of what gets you to net interest income. One is rates, which maybe we'll say stays or goes, [and] one cut," Leon explains. He states the "volumes off of a US economy growing [at] 2.5% is very positive." Additionally, Leon examines how regulatory changes, particularly under a pro-business Trump administration, could further benefit banks. "We have new actors in important roles, not only at the [Federal Reserve] but across all the organizations, whether it's the FDIC [Federal Deposit Insurance Corporation], the Department of Justice, the FTC [Federal Trade Commission]," Leon notes. He believes this will "open up markets" and will allow the country to see a "pro-business, pro-economy" environment the nation hasn't seen in four years. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Josh Lynch
