U.S. Banks’ Record-Breaking Earnings Streak Has Probably Peaked
- Shares post best year in two decades, but warning signs emerge
- Lower rates put pressure on lenders’ net interest income
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As banks close the books on another lucrative year, investors are looking for signs the era of record profits might have some more life.
Bank stocks are coming off their best year in more than two decades, outpacing the broader market with a 36% surge in 2019. And fourth-quarter profits at the six biggest U.S. lenders, set for release next week, will help them challenge the annual record of $120 billion set in 2018, according to analysts’ estimates. Strong consumer units and corporate tax cuts are fueling the gains.