What's the story? What are the takeaways?

This may be the strongest, uh, earning season I've seen from the banks and brokers, the large banks at least.

The median EPS growth was 34% for the largest banks and brokers, those that we cover.

Um, and it was pretty broad-based.

What really stood out most were the capital markets businesses.

Investment banking is booming right now.

For the large investment banks and universal banks that we cover, investment banking fees were up third-- anywhere from 30 to 60% year on year, and it's broad-based, advisory, debt issuance, equity issuance.

Relatively higher policy rates is actually kind of a good thing because you can charge more for loans.

What's the story? What are the takeaways?

This may be the strongest earning season I've seen from the banks and brokers, the large banks at least.

The median EPS growth was 34% for the largest banks and brokers, those that we cover.

And it was pretty broad-based.

What really stood out most were the capital markets businesses.

Investment banking is booming right now.

For the large investment banks and universal banks that we cover, investment banking fees were up anywhere from 30% to 60% year on year.

relatively higher policy rates is actually kind of a good thing because you can charge more for loans.

Uh, according to Jamie Dimon, it's, quote, "Getting close to as good as it gets for JPMorgan and for basically everyone." Why is it such a good time to be a bank right now?

Right now, you, you have, uh, you know, almost a perfect storm of good-- a good economic backdrop.

Um, a resilient economy, high real rates, which is positive for n- the net interest margins of banks.

Uh, you- and you're seeing a resurgence of, of deal-making activity.

Asset prices are, are going higher.

So you have a backdrop that is supportive of a, a wide, wide range of businesses.

Everything from traditional banking, which is benefiting from good loan growth, uh, good net interest income growth, good net interest margins.

I'd be interested to get your reactions to those comments and also this idea that AI could be used on Wall Street to, one, replace people, and two, increase profits.

Yeah

... wealth management will be strong.

Um, there is an expectation that we may be entering into a super cycle of investment banking activity.

So I don't think folks are concerned about investment banking or capital markets-related businesses.

I think to a large degree, though, there's probably some, you know, some disappointment with net interest income, so the traditional business of banks, um, lending, investing in securities.

And w- part of the bull case, Ed, for banks is that you're-- we're now living in an environment where there's positive real rates across the curve.

So a lot of the loans, uh, and s- investments in securities that banks made in a low interest rate environment are effectively repricing to a higher interest rate environment, and you're getting a positive benefit on asset yields that's driving net interest income.

Hmm.