Earnings season kicks off this week and many of the big banks are set to report quarterly financial results.
Earnings will probably be better-than-expected, but the outlook for net interest income is likely to be guided down, Morgan Stanley analyst Betsy Graseck said Monday on CNBC’s “Squawk Box.”
Although Bank Of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC) have performed well year-to-date, Graseck told CNBC that she doesn’t expect the banks to outperform this quarter.
Bank of America and Wells Fargo are among the most asset-sensitive stocks in the financial sector, she said. Net interest income is likely to be guided down because of the flattening yield curve and slow-growing loan growth, Graseck added.
See Also: Bank Statement Converter
Price Action: Bank Of America is up 32.10% year-to-date. Wells Fargo is up 45.49% year-to-date.
At last check Monday, Bank Of America was up 0.94% at $40.42 and Wells Fargo was down 0.11% at $43.88.
