According to Thomson Reuters, analysts predict that the largest US banks in the first quarter report their income decline on average by 20%. According to analysts, the beginning of the year was the worst since the financial crisis of 2007-2008, the Agency said Reuters.
The reporting season for the first quarter of 2016 for us banks kicks off April 13. According to experts, a number of banks, including Goldman Sachs Group Inc., will report the worst results in a decade.
Pressure on the market have concerns about economic growth in China, low oil prices, low interest rates and credit growth, says Reuters.
“What bothers people is the fact (judging by their questions), will you continue this trend throughout the other quarters. When your income is dramatically reduced, there is a limit to which you will be able to reduce costs, to keep your balance,” — commented on the Agency’s leading Bank Goldman analyst Richard Ramsden.
Matt Burnell, a banking analyst at Wells Fargo, in turn, warned that weakening of the capital market can continue at least into the second quarter.
“The first quarter will be terrible, and we don’t think in the second half of the year the situation will be restored”, — said Reuters Jerry the title of national artist, chief investment officer at First American Trust, which owns stakes in Citigroup and JPMorgan, Wells Fargo and Goldman. In his words, “there is still a lot of problems.”