How US Banks Look after the Market Rout in Early February
Among the major banks, Citigroup (C) has the lowest valuation multiple of 1.1x.
US banks (XLF) are expected to pay lower taxes starting in 2018, which can yield higher net margins.
In 4Q17, Wells Fargo’s (WFC) non-interest income increased to $9.7 billion, down from $9.4 billion in 4Q16.
Bank of America’s (BAC) Asset Management division saw 17.0% growth in net income to $742.0 million in 4Q17.
Transaction advisory, equity, and debt underwriting helped banks (XLF) garner strong investment banking revenues in 2017.
Commercial banks (XLF) have seen 2.0%–9.0% growth in credit offtake for fiscal 2017.
Although rising rates have helped US banks recently, a hawkish interest rate policy has sent out waves of global correction in equities.
Retail clients were able to generate wealth and deploy it toward equities and liquid funds in 2017.
BlackRock (BLK) is the biggest asset manager in terms of institutional fund management as well as in terms of total assets.
BlackRock (BLK) was managing $1.8 trillion through the iShares ETF platform as of December 31, 2017.