- Goldman Sachs, JP Morgan and other banking peers reported Q1 numbers last week
- Investors are setting great store on a lending boom for banks in the second half
The first-quarter earnings season for the US banking sector reflected the many contradictions of the current economic climate.
In short, banks in the US are having to manage both a massive inflow of deposits since the start of the pandemic and a lack of profitable ways of lending them out. The focus was, therefore, on how lending in the second half of the year is going to pick up, particularly against the background of a rapidly recovering economy and a White House administration that is intent on spending big and adjusting corporation taxes accordingly.