- Quarterly bank earnings reports from the largest US lenders are expected to make it clear that the country’s economy is in for a long recovery, The Wall Street Journal reported.
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- The four largest lenders more than doubled their reserves for defaulted loans over the first six months of 2020, and profits should be higher in Q3 than Q2, the report said.
- JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) are expected to show an uptick in per-share earnings from the prior three months, FactSet said.
- Last week, InvestorPlace contributor Mark R. Hake wrote that JPM stock, which kicks off bank earnings season tomorrow, “looks like a good value here.” “here is reason to believe that credit metrics have improved. More people are back at work than in Q2, albeit at lower levels than last year. Moreover, as bank analysts foresee that a novel coronavirus vaccine will gain traction next year, this will lead to higher economic activity. That will push up earnings projections.”
