6 takeaways from banks’ 1Q results


Bruce Van Saun, Chairman and CEO of Citizens Financial Group, hit the nail on the head when he said, "We are working on a transition period."

He was referring to the regional bank's drop in mortgage fees after a strong year last year, but could have talked broadly about the industry's first quarter.

Banking earnings have strengthened, but deposits continue to pile up, mortgage lending is cooling off somewhat after a scorching 2020, and M&A activity accelerates banks' pursuit of growth as the economy rebounds from the pandemic recession begins.

A surge in business loan demand would solve some problems and ease pressure on management, particularly new CEOs like Jane Fraser of Citigroup and Kevin Blair of Synovus Financial. Many executives have expressed confidence that credit growth is around the corner, but others - notably Bill Demchak, chairman and CEO of PNC Financial Services Group - say when the recovery will be much more difficult to pinpoint.

One bright spot in the quarter was the widespread release of loan loss provisions. Still, banks wish they had a better sense of the pace of recovery in the months ahead.

Here are six takeaways from the results for the first quarter of 2021, all with a view to the questions banks can answer more clearly in three months' time.

Performers on this card show: Laura Alix, Jim Dobbs, Allissa Kline, Jon Prior, John Reosti, Paul Davis and Dean Anason.


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https://businessservicesnews.ca/2021/04/26/6-takeaways-from-banks-1q-results/

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