Thursday, October 15, 2020

Bank earnings: traders do well with high volatility, retail bankers struggle with low rates

The big US banks reported earnings this week. The performance of JPMorgan, Citigroup, Goldman Sachs, Bank of America, Wells Fargo, and Morgan Stanley was driven mostly by whether they focus on trading or retail clients.

Banks with a trading focus - Morgan Stanley and Goldman Sachs - did well as clients bought and sold stocks in response to the pandemic and companies went public or raised fresh capital.

Banks with a retail focus - Citigroup and Bank of America - struggled due to historically low interest rates and low consumer spending.

Links to Reuters summaries:

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