Investors are confident that the Trump administration will favor a policy of deregulation, which could translate into laxer supervision for banks compared to the Biden administration.
It is about Bank of America which in its Cedears version has climbed 42% so far this year. For its part, its competitor Wells Fargo increase of 54% so far this year. Experts maintain that it is due to election results in the United Stateswhich they granted to donald trump a second term as president.
The investors’ analysis explains that the Republican will favor a policy of deregulationwhich could translate into more lax supervision for banks.
In turn, the president’s support for tax cuts would positively impact the profits of these banks. Finally, Republican control of the Senate is also perceived as positive signs for the banking sectorgiven the party’s characteristic pro-market approach.
Bank of America’s latest balance sheet
The results were driven by increases in trading revenue, asset management and investment banking feeswhich together helped offset a decline in net interest income. This positive momentum translated into an increase in the share price following the results announcement.
Despite net interest income declining to $14.1 billion (down 3% year-on-year due to high deposit costs)Bank of America’s non-interest income increased 5.5% to $11.4 billion. Provisions for credit losses remained stable at $1.5 billion year-on-year, reflecting a cautious approach amid changing economic conditions.
Looking ahead, Bank of America anticipates net interest income of approximately $14.5 billion in the fourth quarter, assuming a 25 basis point interest rate cut occurs.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
