After the leading U.S. banks reported strong results in the second quarter, it looks likely that trading profits will slow down in the third quarter. This phenomenon is noteworthy as attention on whether the market business will be regulated or cleared has increased.
The financial industry points out that after a sharp rise in trading profits for large banks in Q2, there may be a slowdown in growth. This occurs amid changes in U.S. economic policy and with increasing debate over regulation and clearance of the market business.
When reviewing quarterly performance, it is seen that large banks had a surge in sales and profit margin in Q2. However, along with changes in fiscal policy and the possibility of strengthening financial market regulation, there is an outlook for a slowdown in trading profits growth.
After reporting strong results in Q2, U.S. major banks now contain a possible slowdown in profitability growth. This signals that the market business can change depending on regulation and clearance, and it has appeared as financial participants prepare to respond strategically.