NEW YORK: The biggest US banks are expected to kick off the earnings season on a sour note this week due to falling interest rates, which may have pressured net interest margins enough to cause the sector’s first year-over-year earnings per share decline in three years.
While strength in mortgage banking and cheap valuations could provide support to the S&P 500 bank index, its performance depends on what reassurance executives provide on credit conditions, the outlook for loan growth and their ability to reduce deposit costs during their conference calls.
