Financial reports of major banks are released: trading and investment banking become the focus
The second-quarter earnings season for U.S. stocks officially kicked off on Tuesday. include Major large banks including the Bank of China released their quarterly results. The core driver of bank performance this quarter is widely seen as a recovery in investment banking and a sharp increase in trading revenue. Increased market volatility and increased customer trading activity were the main drivers. In addition, the rebound in capital market activity and landmark transactions (such as the largest IPO in the history of Space Exploration Technology Company and Alphabet's large-scale stock issuance) also provided strong support for the investment banking business. In the first half of the year, global investment banking fee income reached US$61.4 billion, a year-on-year increase of 24%. Goldman Sachs has advised on more than $1 trillion in M&A transactions in the first six months of this year, the fastest pace in history. In contrast, consumer banking performance is expected to be more mixed. While commercial and industrial loan growth accelerates, investors will continue to focus on indicators such as deposit costs, loan demand and consumer credit quality. The sustainability of net interest income is becoming a new focus of the market.