Larger banks have mostly fared better than smaller ones since last year’s banking crisis that led to the shuttering of three institutions, CNBC reports.
That trend is expected to continue, especially as expectations for further interest rate cuts by the Federal Reserve have dropped.
The delaying of further rate cuts will help boost revenue for big banks while putting pressure on smaller ones, according to analysts and investors.
JPMorgan Chase, the nation’s largest lender, kicks off earnings reports for the industry on Friday, followed by Bank of America and Goldman Sachs next week.
The focus for all of them will be how the shifting view on interest rates will impact funding costs and holdings of commercial real estate loans.
Baton Rouge-based Business First Bancshares, the parent company of b1Bank, will release its fourth-quarter earnings Jan. 23. It is the only local organization to announce its release date for its earnings.
Editor’s note: This story has been updated since original publication to reflect b1Bank’s upcoming release of fourth-quarter earnings is the only announced release to date.
