13 Jan, 2021 10:15 am

U.S. Banks Q4 2021 Earnings Preview

U.S. Banks Q4 2021 Earnings Preview
Stocks Analysis by Matthew Weller covering: S&P 500, Citigroup Inc, Bank of America Corp, JPMorgan Chase & Co. Read Matthew Weller's latest article on

While a few companies’ results have been trickling in already, Q4 earnings season kicks off in earnest starting on Friday, when the major US banks start to report.Banking is a highly anticipatory business, and not surprisingly, major US banks spent much of 2020 anticipating that many of the loans they’d made in recent years could result in losses based on the sharp downturn in economic growth.That said, WFC has the biggest mortgage division of the major banks, and the combination of record low interest rates and a surging housing market may have boosted this key division.p For traders looking to place bets on an economic recovery, Bank of America (NYSE: BAC ) may be the most levered of the major banks to a “return to normal” in 2021.

Basically, after proactively taking losses on fears of a protracted global recession earlier in 2020, banks may now start to reverse those losses and re-realize profits on previous loans.After banning stock buybacks and capping dividends for banks in June, the Federal Reserve surprised investors by announcing that US banks could once again start repurchasing shares.

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