A big bank rally is about to be put to the test
What increase in loan loss provisions is expected for the big four banks?
The big four banks are expected to see a 26% increase in loan loss provisions compared to last quarter. This comes as higher interest rates pose more challenges for borrowers, prompting caution from lenders.
Which big banks are reporting Q2 results this Friday?
JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) are reporting their second-quarter results this Friday, kicking off another earnings season for the US banking industry. Bank of America (BAC) will report its results the following Tuesday.
How much have the stocks of these big banks climbed since January?
The stocks of big banks, including JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), and Bank of America (BAC), have each climbed more than 20% since January, outperforming the S&P 500 (GSPC). This performance is also roughly double the gains of an index that tracks the wider industry, the KBW Nasdaq Bank Index (^BKX).