NEW YORK (Reuters) – As big U.S. commercial banks close their books on the third quarter, analysts expect them to report a 30% to 60% plunge in profits on the year-ago period due to the pandemic-induced recession and near record low interest rates.
That slump in third quarter net income comes even though lenders are not going to make outsized provisions for expected loan losses as they did in the first and second quarters.
And, while capital markets and investment banking revenue is expected to be up from 5% to 20%, that won’t be enough to make up for the decline in interest income from loans and securities. Read more…..
Chart of the Day
Bank stocks sink following a report of alleged widespread-money laundering activities. Odeon Capital Group LLC Senior Research Analyst Dick Bove joins Yahoo Finance’s Zack Guzman to break down the details.