Bank Stocks Outperform Most Major Market Indexes A Bill in Congress Could Help the Industry Even More. BANKING'S UPWARD TREK

By Guy Halverson, writer of The Christian Science Monitor | The Christian Science Monitor, July 14, 1994 | Go to article overview

Bank Stocks Outperform Most Major Market Indexes A Bill in Congress Could Help the Industry Even More. BANKING'S UPWARD TREK


Guy Halverson, writer of The Christian Science Monitor, The Christian Science Monitor


THE United States commercial banking industry, which saw profits rise for the second year in a row in 1993, is once again posting solid financial gains at this midpoint in 1994.

Sparked by a lively economy, strong demand for loans from consumers and especially businesses, and fewer losses on problem loans, the value of bank stocks rose sharply earlier this year. Between April and mid-June, their prices climbed 10 to 12 percent. And the bull market for banks is not over yet.

"Fundamentals remain very favorable," says J. Frederick Meinke, a bank industry analyst with investment house Kemper Securities Inc. in Chicago.

Dennis Jarrett, chief technical analyst for investment house Kidder, Peabody & Co., says he sees the large money center banks - as well as financial institutions in general - showing continued "leadership" on Wall Street among major stock sectors.

Financial stocks, including bank stocks, plummeted to a low point on the Standard & Poor's 500 in 1990. This year, both large money center banks and smaller regional banks have managed to outperform the broader market. Beating market indexes

Still, many investment houses, such as Donaldson, Lufkin & Jenrette Inc., say the recent heady pace of bank-stock gains may be abating or may even be over. Even if bank revenues grow at a slower pace, banks are expected to turn in sizable profits, coming close to equaling - or possibly exceeding - last year's results, some experts say.

"We fully expect bank stocks to outperform most major market indexes this year," Mr. Meinke says. Operating revenues are strong, he notes. Consumer loan growth is also sizable. But it is not as large as before the recent round of interest-rate hikes, which caused many homeowners to pull back from plans to refinance mortgages or other big-ticket charges. Bank credit costs have been leveling off, Meinke says. Further, many banks have been posting financial recoveries on real estate losses that had been charged against profits in previous years.

Corporate lending, meanwhile, has been soaring. It is up 6 percent over 1993 levels. At the same time, banks are vying with each other to finance mergers and acquisitions.

The current optimistic outlook for the banking industry is buttressed by federal statistics showing that fewer banks are reporting losses and inadequate capital levels. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Bank Stocks Outperform Most Major Market Indexes A Bill in Congress Could Help the Industry Even More. BANKING'S UPWARD TREK
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.