Berenberg On Banks: Initiating Coverage On Citigroup, Bank Of America And Others

It’s a big week for big banks as they continue striving to deliver earnings in what is likely the harshest banking environment in history. Yet, Berenberg sees the potential for significant upside for selective bank investors ahead of Q2 earnings.

U.S. banks face unprecedented regulation and capital requirements in the wake of the Financial Crisis, and geopolitical uncertainty following the Brexit vote has likely delayed the next Federal Reserve interest rate hike. Historically-low interest rates have severely compressed banks’ net interest margins, making it difficult to deliver much earnings growth.

Despite the harsh banking environment, a selloff in banking stocks has left many of the big banks trading at the low end of their historical valuation ranges.

Berenberg has initiated…

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