Capacity For Growth? Earnings Season Gets Underway Next Week

Bank earnings season kicks off in less than a week when three banks, all active fund finance lenders, report on July 14. Revenue growth has become more difficult to come by with mortgage originations slowing into rising rates, investment banking fees likely meaningfully lower, and asset management income also down due to declines in equity and fixed income prices.

Together, this may make for a bread-and-butter quarter where old-fashioned loan growth and higher net interest margins from rising interest rates power net interest income growth. To this point, Fed data through late June show 19 consecutive weeks of loan growth at banks, a rare growth streak. Within the various lending categories, C&I has consistently grown the fastest in 2022, and that trend has accelerated in recent weeks.