Tuesday, October 25, 2011

Two-thirds of banks meet or beat expectations

Two-thirds of the 71 banks tracked by financial services firm Keefe, Bruyette & Woods, Inc. met or beat expectations in the third-quarter, according to a research report from its analysts.

Forty-two beat consensus estimates, five met them, and 24 missed, the firm reported. The largest banks showed a 14 percent increase in operating earnings per share,

Deposits also grew at an annual rate of 4 percent, KBW says.

But all is not rosy. Large banks reported that net interest margin -- or the difference between what a bank makes on its investments and what it pays to depositors -- compressed by an average of 11 basis points.

Loans were also relatively flat, KBW reported.


Anonymous said...

Does this mean the banks are good, or are the expectations bad?

Anonymous said...

I don't expect much from Bank of America and they haven't let me down in nearly a decade.