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...