Daily News: July 11, 2016

Bloomberg: Brexit Hits U.S. Bank Profits, Bonuses

Bloomberg reported that Q2/16 net income of the six largest U.S. banks is expected to drop 18% year-over-year, resulting in bonus cuts.

Analysts are only beginning to recalculate forecasts for future periods to take the Brexit aftermath into account, according to a Keefe, Bruyette & Woods research director quoted by Bloomberg.

The combination of low interest rates, market turmoil and Brexit-related economic woes are expected to diminish bank revenue and stall deals according to Bloomberg.

Analysts expect the combined year-end 2016 earnings of the six largest U.S. banks to drop 14%, Bloomberg reported.