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Two financial giants banking on a credit boom
Two global financial giants have just reported fourth quarter earnings. Wells Fargo and JPMorgan both reflecting the outlook for the US financial sector. With household lending set to increase significantly in 2014; as the economy grows and some of the credit regulations introduced after the financial crisis are eased, all the big banks are set to benefit.
JPMorgan increased its lending by USD 10 billion in Q4. Wells Fargo is showing very healthy results almost across the board.
Peter Garnry is positive on Wells Fargo but on JPMorgan he’s neutral, mainly because he thinks there are better opportunities out there. He suggests if you want capital market exposure then to go for Goldman Sachs rather than JPMorgan. Another reason being that many investors are still nervous about the litigation exposure linked with JP Morgan.
Overall both banks have done well and are showing promise it’s just that if you had to pick a winner right now then it would easily be Wells Fargo.
01:39 minutes
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