Bank earnings reveal capital markets' 'resurgence': Analyst

Bank earnings reveal capital markets' 'resurgence': Analyst

Bank earnings reveal capital markets' 'resurgence': Analyst

Posted by on 2024-04-16

Morgan Stanley (MS) and Bank of America (BAC) have reported their first quarter earnings, beating expectations on the top and bottom lines. Bank of America posted revenue of $25.82 billion, surpassing estimates of $25.61 billion, alongside an adjusted EPS of $0.83, beating the $0.77 estimate. Similarly, Morgan Stanley reported revenue of $15.14 billion, outperforming the $14.46 billion estimate, with adjusted EPS of $2.02, exceeding the $1.66 estimate. To provide insights on these results, Argus Research Director of Financial Services Research Stephen Biggar joins Yahoo Finance. According to Biggar, the overarching theme is "a resurgence in capital markets" — a "durable upturn in investment banking." Biggar notes that the banks' capital markets-related businesses, such as wealth management, investment banking, and trading, are "doing much better." However, he acknowledges that the lending business and net interest income have "faced some struggles." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance. This post was written by Angel Smith