PNC - As JPMorgan Citi Kickstart Big Bank Earnings This Week Analyst Sees Silver Lining In Cloud: 'May Not Take Much For Banks To Produce An Upside Surprise' | Benzinga
Big bank earnings kick off this week, featuring early reports from JPMorgan Chase & Co. (NYSE:JPM) and Citigroup, Inc. (NYSE:C).
2 Key Focus Areas: When the major banks release their quarterly results, all eyes will be on the impact of the 76 basis points increase in the 10-year Treasury yield during the third quarter, as well as the stability of deposits, as noted by FactSet analyst Sean Ryan.
Ryan anticipates a slowdown in the flow of demand deposits into money market accounts and CDs. This shift is likely to result in increased deposit costs and, consequently, exert pressure on net interest margins.
The analyst also raises the prospect of overdraft ...