According to the Institute of International Finance, an industry group, US banks are expected to post “record levels” of profits in 2021 as the US economy recovers and financial markets continue to perform well.
IIR CEO Tim Adams said on Friday that improving the economy would increase bank lending and commission income, and boosting investment activity would increase trading income.
“It’s a good year for the banks because I think we will see record returns this year. Watch it in bank stocks and at least for the rest of the year, ”Adams told CNBC.Street sign in Asia“
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Shares of US banks have risen this year. Goldman Sachs As of Thursday’s closing, this year has risen 40.8% so far. Bank of America And JP Morgan Increase of approximately 40.4% and 29.3%, respectively.
Many of America’s biggest banks last month Results published in the first quarter This exceeded analysts’ expectations on certain financial indicators.
Banks are improving as the US economy recovers from the crisis of the Covid-19 pandemic. The economic recovery has raised concerns among investors that accelerating inflation could force the Federal Reserve Board (FRB) to tighten monetary policy sooner than expected.
United States Consumer Price Index April grew 4.2% year over year – Significant increase since 2008.
“I think they are driving this economy hot. They will heat it up for a very long time, and they will wait for inflation and how long the inflationary pressure will last rather than temporarily. This is what I am now. This is what we are seeing, ”Adams said.
The Fed previously said the spike in inflation was temporary compared to last year’s pandemic economy. The central bank also suggested maintaining the easing of monetary policy.
US banks set to hit ‘record levels’ in revenue in 2021, IIR says
Source link US banks set to hit ‘record levels’ of revenue in 2021, IIR says