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.

2 comments:

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.