The shares of the banks in the United States have sunk this 2022 while the Spanish banks lead the gains on the Stock Market. The monetary policy decisions of their respective central banks, as well as the economic sanctions against Russia for the invasion of Ukraine, have been some of the factors that move their shares in the stock market.
The English bank Barclays registers the biggest drop with -22.49% in 2022, followed by BlackRock (-20.44%), the French BNP Paribas (-19.80%) and the investment fund Ashmore (-19.45%) until this Monday.
Banks listed on Wall Street have lost this year. Credit Suisse’s American Depositary Receipts (ADRs) are down 20.12%, JPMorgan shares are down 16.01%, Citigroup is down 16.29%, Goldman Sachs is down 16.15% and Morgan Stanley is down 14.41%.
Jacobo Rodríguez, director of Economic Analysis at Black Wallstreet Capital, explained that “the large banks in the United States have been affected by the intermediation part and what concerns private banking, that is, they are affected by the accelerated increase in interest rates. of interest, which has a negative impact due to losses in debt instruments”.
He said that “on the other hand, the regional banks have not been so affected, although they have had losses on a par with the market in general, but they are more limited, because they focus on traditional banking, retail banking with consumer loans, which is not so affected”.
In the United States, the Federal Reserve has already started its rate hike cycle and its bond repurchase program, reducing liquidity in the market.
On Wednesday JPMorgan Chase and BlackRock begin the reporting season for financial sector issuers on Wall Street, while Citigroup, Wells Fargo, Morgan Stanley and Goldman Sachs will present their quarterly results on Thursday.
Jacobo Rodríguez said that the inflationary scenario will set the tone for the increase in interest rates, “since the inflationary pressures are going to be maintained for a good period.”
Spanish, positive
Banks in Spain lead the gains this 2022 on the Stock Exchange, led by CaixaBank with an increase of 31.73% on the Madrid Stock Exchange, followed by Sabadell with a gain of 24.64%, Bankinter with a return of 17.85% in the year and Santander with 7.40% increase in the price of its shares on the Ibex-35. Only BBVA has a fall of 5.49% in the year.
Jacobo Rodríguez pointed out that “Spanish banking is more focused on retail banking and so many pressures are not expected there. The largest banks with an international presence are estimated to have the most pressured quarterly results for this first quarter”.
He mentioned that “The European Central Bank should already be evaluating the increase in interest rates for its next meetings, but it is also observed that the rates of 10-year bonds in Europe were negative a year ago, and this year they are already on the ground. positive. Therefore, the market already expects a movement in the interest rate”.