Despite lenders stockpiling funds for rainy days in anticipation of an economic slowdown that is wreaking havoc on investment banking, U.S. Banking behemoths are expected to report lower fourth quarter profits.
According to early analyst projections from Refintiv, the six banks are also anticipated to report an average 17% decline in net profit in the fourth quarter compared to a year earlier.
Results at Wells Fargo will continue to be impacted by regulatory fines and the fallout from the fake accounts scandal.
Analysts will also keep an eye on any write-downs that banks like Morgan Stanley and Bank of America make on the $13 billion loan used to finance Elon Musk’s acquisition of Twitter. KBW index (.BKX) of bank stocks is up roughly 4% this month after falling nearly 28% overall.