Big banks expect strong revenue as trading and deal activity rise
U.S. banks earnings: trading, IPOs and lending likely boosted Q2 results See which lenders benefited most and what could drive growth next year
Major U.S. banks are expected to report solid secondquarter results this week, with revenue from trading and investment banking likely benefiting from a busy market environment.
Analysts say activity around the SpaceX IPO, increased merger work and volatility tied to geopolitical tensions, including the Iran conflict, helped lift both equity and fixedincome trading during the quarter. Banks also appear to be seeing more demand for commercial lending and healthier consumer credit conditions.
JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs are scheduled to report early Tuesday, with Morgan Stanley due Wednesday. While the quarter is expected to look strong, analysts say investors will focus on whether these trends can continue into next year.