Bank earnings expected to take off, as Wall Street watches closely

Investors will be watching loan numbers like a hawk when banks kick off earnings season next week.

Any Fed’s tapering decision in the near future, with the prospected rising in the interest rates could help banks go ahead to widen their net interest margin and consequently the profits they make on lending.

Bank stocks have outpaced the broader market sectors and have been strong performers so far in 2021. A continued rally in bank stocks will likely depend on whether companies and individuals increase borrowing.

Some bank stocks have additional uptrend potential. Several investors want to seize the opportunity to buy the distinguished stocks ahead of the banks’ Q3 earnings, which will start rolling out on 13 October and could stir market interest.