Deals
Trump Tax-Cut Optimism Fades Into Trade-War Gloom at Top Banks
- Investment-banking fees seen falling 4.7% in second quarter
- Loan books probably expanded less than 2% from year earlier
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It was supposed to be the best of times for the biggest U.S. banks: Rising interest rates and corporate tax cuts would boost profitability and spur lending, while deregulation lowered costs.
The optimism didn’t last. Loan books probably expanded only slightly last quarter while revenue failed to match the acceleration posted in the first three months of the year, based on the latest analyst estimates. And the outlook isn’t brightening. A flattening yield curve and a potential trade war threaten to make the second half even worse.