Big banks to report first quarterly result with a downbeat expectation


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Big banks to report first quarterly result with a downbeat expectation

Next week, larger global lenders would begin to release their first quarterly result, while investors seemed to be frightened on an increasingly prominent risk of falling profits, as a much-dovish Federal Reserve following four interest rate hikes last year and lower interest rates could post a first quarterly contraction in the corporate earnings since 2016.

On next Friday, the 12th of April, Wells Fargo & Co. and JPMorgan Chase & Co. would post their first quarterly results to kick off the earnings season, while Goldman Sachs Group Inc. alongside, Citigroup Inc.

would be reporting their earnings on following Monday (April 15th). Besides, the Morgan Stanley and Bank of America Corp. have been scheduled to unveil their earnings report on April 16th. While the earnings season is set to begin next week, market volatilities over the financial sectors are expected and multiple analysts, alongside investment funds had already started to put “sell” rating over the financial stocks.

According to Refiniv data, banks listed in S&P 500 had posted a first-quarter earnings growth of 2.3 percent on a year-on-year basis, down from a previous estimation of 8.2 percent six months earlier, as Fed had shifted to a “patient” stance amid signs of softening US economy and a drop in 10-yr Treasury Yields.