Bank Stock Roundup: Q2 Earnings In Full Swing, Citi & U.S. Bancorp Impress
Zacks Investment Research | Jul 21, 2016 10:39PM ET
In spite of the tough industry backdrop and rising provisions due to energy sector lending, most of the banks that reported second-quarter 2016 results this week managed to beat estimates with their cost-control measures and top-line strength. This also led to positive price movement for most stocks.
Further, the results demonstrated an upswing in loans driven by a rise in commercial loan demand, which ultimately boosted net interest income. Additionally, the rise in deposit balances helped drive organic growth at the banks.
However, an overall rise in non-interest expenses owing to high spending on technology and other market development initiatives was an undermining factor. Moreover, the low-rate environment adversely impacted net interest margins for most of the banks. Nevertheless, the absence of exceptionally high legal expenses helped banks outpace the Zacks Consensus Estimate.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.