Loans Will Be the Key to Banks’ Future Fortunes

Loans Will Be the Key to Banks’ Future Fortunes

October 11, 2021 0 By administrator

As investors brace for underwhelming earnings reports across much of the business world, the country’s biggest banks are expected to report solid profits this week, thanks to the central role they play in the reopening economy.

The banks’ quarterly reports will reflect a recovery that is both bumpy and shifting — their trading businesses will probably fall short of last year’s windfall, while consumer divisions will most likely fare better as vaccinated Americans spent more on goods and leisure.

“The health of the economy is the key driver for banks,” said Alison Williams, an analyst at Bloomberg Intelligence. “The consumer is out there spending — similarly, businesses look healthy.”

The results coming this week will be from a period of transition — beginning in July, when optimism was running high, and ending in September, after the Delta variant of the coronavirus had sent infection rates rising again and analysts cut their expectations for economic growth.

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