Big US banks optimistic for 2017 after earnings reports show profit increases
Executives of big US banks expressed optimism last Friday about the outlook for 2017 in their first public comments about quarterly earnings since the US presidential election in November.
JPMorgan and Bank of America, the two largest US banks, kicked off the corporate reporting season on a rosy note, each with healthy increases in fourth-quarter profit. Those improvements came on the back of trading revenue gains, higher interest rates, healthy loan growth and cost controls.
"We are very optimistic about the future, optimistic about new policies which could spur growth," Bank of America chief Brian Moynihan said. JPMorgan boss Jamie Dimon was more circumspect, but said he was comforted by the fact that Donald Trump was selecting people with experience to join his team.
Dimon also cited several positive economic trends that suggest the global economy is headed in the right direction, which will help buoy bank earnings. "The economy is getting better," he said. "Interest rates help and looking forward, you probably have a better political, legal and regulatory environment."
Sunday Indo Business