Did you hear the latest news from the banking industry? JPMorgan Chase just announced the most profitable year in the history of the US banking industry. The bank earned $26.5 billion in profit over the past 12 months, which is the highest figure ever among major US banks.
Sounds amazing right? Maybe. The answer is a bit more complex that it first appears. On Friday, the bank reported Q2 earnings that missed estimations – as far as FICC sales and trading revenue are concerned. It also appears that the Trump effect that followed the recent US Election is starting to wear out. In fact, all except two of the 24 companies included in the KBW Bank Index decreased on Friday. The same index skyrocketed following Trump’s victory, as many people were hoping for extensive bank reforms.
JPMorgan Chase isn’t the only bank facing problems. Wells Fargo reported a decrease in lending and Citigroup reported less trading revenue.
This is the beginning of the banking earning report season. Could it be viewed as an indication of what’s yet to come?
This story also present an important lesson for traders – especially those who engage in Fundamental Analysis. When major reports are released, it isn’t enough to just read the headlines. Every piece of data matters when you’re making trading decisions.
Want to learn more about trading strategies and market opportunities? Visit the iFOREX Education center.
Found this article interesting?
Want to see how quickly you can take your first steps in the world of online trading?
iFOREX has one of the most popular training packages.