{"id":46724,"date":"2026-01-10T11:35:39","date_gmt":"2026-01-10T11:35:39","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/10\/what-to-expect-from-us-big-banks-as-they-report-earnings-next-week\/"},"modified":"2026-01-10T11:35:39","modified_gmt":"2026-01-10T11:35:39","slug":"what-to-expect-from-us-big-banks-as-they-report-earnings-next-week","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/10\/what-to-expect-from-us-big-banks-as-they-report-earnings-next-week\/","title":{"rendered":"What to expect from US big banks as they report earnings next week?"},"content":{"rendered":"
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US big banks are set to kick off earnings season next week, and experts are bracing for solid results.<\/p>\n

According to Ken Leon, a senior CFRA analyst, the outlook for these banking giants is \u201cvery positive\u201d, with several tailwinds that could lift both profits and stock prices.<\/p>\n

Note that iShares\u2019 big banks exchange-traded fund (ETF) has already been in a sharp uptrend \u2013 up nearly 60% versus its 52-week low at the time of writing.<\/p>\n

Still, the CFRA analyst sees US bank stocks rallying further in 2026 on the back of the following tailwinds.<\/p>\n

Rate environment favours bank stocks<\/h2>\n

Speaking recently with CNBC<\/em>, Leon cited the current rate environment as a major positive for the US bank stocks.<\/p>\n

The Federal Reserve is broadly expected to pause in January and lower rates further<\/a> in the months ahead. What this stance means for big banks is predictable funding costs, offering a cushion against volatility.<\/p>\n

With a more lenient monetary policy, lenders are positioned to expand margins, and investors gain confidence in their forward earnings.<\/p>\n

How steepening yield curve benefit bank stocks<\/h2>\n

Another major tailwind for the Wall Street banks this year is the yield curve that\u2019s shifted in their favour.<\/p>\n

\u201cWe\u2019re seeing a steepening yield curve that\u2019s improving net interest margins,\u201d Leon told CNBC,<\/a> adding this dynamic enables banks to borrow cheaply on the short end while lending at a higher rate on the long end.<\/p>\n

The result: healthier spreads and strong profitability in their core lending businesses.<\/p>\n

Bank stocks to rally on loan demand<\/h2>\n

According to the CFRA expert, loan demand will remain resilient this year as \u201cthe US economy is still very good,\u201d with growth projected at up to 3.0%.<\/p>\n

That translates into steady expansion in traditional banking activities, from mortgages to corporate lending.<\/p>\n

As businesses and consumers continue to borrow, bank stocks will benefit from both volume and pricing power.<\/p>\n

Capital markets to drive bank earnings<\/h2>\n

Beyond traditional lending, Ken Leon sees capital markets as the real earnings catalyst. \u201cThe delta for earnings has been the capital markets,\u201d he noted.<\/p>\n

Mergers and acquisitions (M&A), equity underwriting, and initial public offerings (IPOs) surged in late 2025, with $146 billion raised \u2013 up 30%.<\/p>\n

And that momentum will likely carry into this year, fueling fee income and accelerating investment banks\u2019 bottom lines, he concluded.<\/p>\n

Are US big banks expensive to own?<\/h2>\n

In the CNBC<\/em> interview, Leon admitted that valuations aren\u2019t cheap. <\/p>\n

\u201cWhen you look at things like price and net tangible book value, they\u2019re expensive,\u201d he acknowledged.<\/p>\n

Yet with regulatory easing on the horizon \u2013 possibly enabling buybacks and higher dividends \u2013 he believes investors should stay the course.<\/p>\n

For the CFRA analyst, the combination of strong fundamentals and capital return makes US bank stocks worth owning, even at the current elevated multiples.<\/p>\n

The post What to expect from US big banks as they report earnings next week?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

US big banks are set to kick off earnings season next week, and experts are bracing for solid results. According to Ken Leon, a senior CFRA analyst, the outlook for these banking giants is \u201cvery positive\u201d, with several tailwinds that could lift both profits and stock prices. Note that iShares\u2019 big banks exchange-traded fund (ETF) <\/p>\n","protected":false},"author":1,"featured_media":46725,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-46724","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=46724"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/46725"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=46724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=46724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=46724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}