Big U.S. banks to report profit plunge as pandemic recession takes hold

Investing.com | Oct 1, 2020 at 2:00 AM
  • As big U.S. commercial banks close their books on the third quarter, analysts expect them to report a 30% to 60% plunge in profits on the year-ago period due to the pandemic-induced recession and near record low interest rates.
  • Investment banks Goldman Sachs Group Inc (N:GS) and Morgan Stanley (N:MS), which are benefitting from being more concentrated in the busy capital markets, are expected to report more modest profit declines of about 5% to 10%.
  • Stuffed with cash, bank net interest margins — the spread between their cost of money and what they earn on loans and securities — fell to their lowest levels in 35 years in the second-quarter.