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U.S. Banks Should See Higher Profits in 2017, but Plenty of Wild Cards Are in Play
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U.S. Banks Should See Higher Profits in 2017, but Plenty of Wild Cards Are in Play

S&P Global Market Intelligence
Standard & Poor's, 2016
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Editorial Rating

7

Qualities

  • Analytical
  • Innovative

Recommendation

US bank profits look set to grow in 2017, according to this expert analysis from S&P Global Market Intelligence. A steepening yield curve, along with the prospects of decreased regulation, increased deficit spending and lower corporate tax rates under the Trump administration are all tail winds. Nonetheless, any number of developments – geopolitical, macroeconomic and sector-specific – could spell trouble, so industry observers need to focus on the interconnectedness of many variables. getAbstract recommends this rigorous study, written for financial professionals, analysts, regulators and investors, for its thoroughness and accessibility.

Summary

Regulation, domestic monetary and fiscal policy, the shape of the yield curve, and global financial developments all will influence the bottom line of US banks in 2017. But their overall prospects look good, and anticipated Trump administration policies bode well for economic growth and a relaxed regulatory environment. Several factors are at work:

  • Higher long-term interest rates since the US presidential election, reflected in a steepening yield curve, could add to bank profitability.
  • Less regulation could mean more profits and more risk...

About the Author

Standard & Poor’s is a global rating agency and a research and analysis organization.

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