Bank Stock Roundup: Fed Hints At Rate Hike, JPMorgan & BofA In Focus
Zacks Investment Research | May 19, 2016 10:02PM ET
Major banking stocks have been optimistic over the last five trading days on possibilities of an interest rate hike in June, as per minutes (released this week) of the Federal Open Market Committee (FOMC) meeting in April.
"Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor markets continued to strengthen, and inflation making progress toward the committee's 2 percent objective, then it likely would be appropriate for the committee to increase the target range for the federal funds rate in June," according to the minutes.
An interest rate hike will aid top-line expansion for banks, making way for improved results in the second quarter.
Introduction of digital technology has always remained a cost-effective method for banks. Further, increasing competition from financial technology firms (FinTech) is compelling banks to digitalize banking operations. Therefore, financial institutions are planning to roll out cardless ATM technology, with Bank of America Corp (NYSE:BAC). (NYSE:C) leading the way.
Such possible ways help in enhancing customer experience, lower expenses and improve profitability.
Further, steps taken to conclude litigation issues pertaining to their past business conduct were prominent. Meanwhile, the law-enforcement agencies are trying to resolve such issues in order to avoid lengthy litigations.
(Read: Zacks Investment Research
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