Modest expectations

The season of the publication of the quarterly results will be open during the week from JPMorgan, the expectations are the bank account 16% drop in business from trading fixed income, currencies and commodities compared with the previous quarter. Net income you will be 5% lower than a year earlier and is of the order of 4.86 billion. Dollars, predict analysts from Deutsche Bank.

Some top managers, including the CEO of Bank of America Brian Moynihan, last month lowered its expectations for revenue from trading last quarter, reminds FT. Undertaken by the Fed increase interest rates happened just two weeks before the end of the quarter, which limits the possible positive effects of the step on the financial results of banks for the period.

“At the beginning of the fourth quarter, many investors believed that there would be progress compared to the third quarter, largely on expectations that the Fed will raise rates. These hopes have been dashed,” said Gerard Cassidy, an analyst at RBC Capital Markets.

Last month, Morgan Stanley announced plans to lay off 470 employees from the unit for trading fixed income, currencies and commodities, which represents about a quarter of the bank’s employees.

Meanwhile, units of retail banking institutions likely to benefit from increased interest rates. Lenders already shifted higher interest rates to borrowers, but for now, for the most part, refrain from offering better conditions of depositors, notes FT.

Estimates of Goldman Sachs bank can increase its net profit by around 2% this year, assuming that the cost of deposits remains unchanged and the Fed take two more increases in interest rates. According to Jefferies analyst Ken Usdin big question for 2016 is whether the loss of energy and other “over-indebted” sectors will fully offset profits from net interest margin, transmit more FT.