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

Investing.com | Oct 3, 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.
  • And, while capital markets and investment banking revenue is expected to be up from 5% to 20%, that won’t be enough to make up for the decline in interest income from loans and securities.
  • 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%.