US Banks To Benefit From 'Higher For Longer' Interest Rates: Goldman Sachs Sees 'Modestly Attractive Entry Point' For Investors
Portfolio Pulse from Piero Cingari
Goldman Sachs analyst Richard Ramsden expresses cautious optimism for U.S. banks ahead of Q2 earnings, citing benefits from sustained high interest rates. Key banks like JPMorgan Chase, Wells Fargo, Citigroup, Bank of New York Mellon, Goldman Sachs, and Bank of America are set to report earnings soon. Ramsden highlights potential revenue growth and attractive valuations, but also notes risks such as modest loan growth and credit asset deterioration.
July 01, 2024 | 8:33 pm
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POSITIVE IMPACT
Bank of America is set to report Q2 earnings on July 16. Goldman Sachs is positive on BAC, expecting a constructive NII trajectory and a 12.9% upside potential.
Goldman Sachs is positive on Bank of America, expecting a constructive NII trajectory and a 12.9% upside potential. The high interest rate environment is expected to benefit its profitability.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Bank of New York Mellon is set to report Q2 earnings on July 12. The high interest rate environment is expected to benefit its profitability, but risks like modest loan growth and credit asset deterioration remain.
Bank of New York Mellon is expected to benefit from the high interest rate environment, which could boost its profitability. However, risks like modest loan growth and credit asset deterioration could impact results.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Citigroup is set to report Q2 earnings on July 12. Goldman Sachs remains positive on Citigroup, expecting benefits from high interest rates and projecting a 13.4% upside potential.
Goldman Sachs is positive on Citigroup, expecting it to benefit from the high interest rate environment. The firm projects a 13.4% upside potential for the stock.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Goldman Sachs is set to report Q2 earnings on July 15. The firm projects strong trading revenue growth and a significant rise in investment banking fees, but notes risks like credit asset deterioration.
Goldman Sachs is expected to report strong trading revenue growth and a significant rise in investment banking fees. However, risks like credit asset deterioration could impact results.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
JPMorgan Chase is set to report Q2 earnings on July 12. Goldman Sachs sees potential benefits from high interest rates but notes risks like modest loan growth and credit asset deterioration.
JPMorgan Chase is among the first to report earnings, and the high interest rate environment is expected to benefit its profitability. However, risks like modest loan growth and credit asset deterioration could temper gains.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Wells Fargo is set to report Q2 earnings on July 12. Goldman Sachs is positive on WFC, expecting earnings upside once the asset cap is lifted and projecting a 3% higher PPNR compared to consensus.
Goldman Sachs is optimistic about Wells Fargo's earnings potential, especially once the asset cap is lifted. The firm projects a 3% higher PPNR compared to consensus, driven by fee income and core expenses.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80