The nation's largest banks start their second-quarter earnings reporting season starting this week. Investors seek insight from the reports how the increasing interest rates in the country have impacted mortgages, the housing market, and the business lending sector. All of which are vital to overall US economic expansion.
JPMorgan Chase & Co., along with Wells Fargo, will lead the pack with their reports before US stock markets opens. Analyst expect JPMorgan, the largest bank in the US, to earn US$1.44 a share, an increase of 18% from 2012, according to FactSet's. Wells Fargo, on the other hand, is thought to see profits increase 12% to US$0.93 cents per share. Wells Fargo is the nation's largest mortgage lender.
According to brokerage firm Sterne Agee, Overall, US banks' profits will increase between 7% to 10%. "You'll continue to see earnings growth, but slower. Underlying business activity definitely slowed down during the quarter,'' Sterne Agee analyst Todd Hagerman explained.
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