Poor second quarter results for US banks?

11 July 2011

Banks in the US are expected to report a lacklustre second quarter for 2011, marking a clear contrast with the positive figures recorded in the first three-month period of the year.

According to analysts, JPMorgan - which has been in operation for more than 200 years - is expected to announce a 20 per cent dip in its trading revenues and sales, while similar findings are expected at Citigroup, Bank of America, Goldman Sachs and Morgan Stanley, the New York Times reports.

The negative statistics mean there is an air of uncertainty surrounding activity at the institutions at present, with fears that more layoffs could be on the cards as a result.

William Tanona, a financial services analyst with UBS, said: "We are undoubtedly being impacted by lower levels of activity. There is a lot of uncertainty out there."

Despite this, the five banks are still expected to receive over $20 billion as a result of their core trading operations.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development