Wall Street’s Profit Rebound Fails to Assuage Wary Shareholders
- Executives say they’ve stockpiled plenty of cash for bad loans
- Yet concerns mount about the outlook for increasing revenue
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Bank profits are starting to resemble life before Covid, but investors aren’t buying the idea that the industry’s crisis has passed.
In earnings reports this week, the top U.S. firms said they already socked away most of what they will need to cover near-term losses on loans, and they’re still benefiting from a pandemic-fueled trading boom. Yet even as the five biggest banks reported a profit rebound in the third quarter, their stocks remained laggards.