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KBW remains overweight on big U.S. banks ahead of Q4, anticipating 11% EPS growth for 2026 driven by strong net interest income and stable credit quality. Analyst Christopher McGratty highlights Citigroup as the top Universal pick, with State Street expected to report above-consensus EPS. Among Super Regionals, US Bancorp is noted for its positive operating leverage, while several small and mid-sized banks are also highlighted. Overall, U.S. bank profits are projected to surge in Q4 due to increased investment banking revenue.
U.S. Bancorp (USB) reported a Q3 net income of $2.00 billion, up from $1.71 billion a year ago, with earnings per share at $1.22, exceeding analysts' expectations of $1.12. Total net revenue rose to $7.33 billion, driven by a 2% increase in net interest income and a 14.1% rise in noninterest income. The company anticipates stable net interest income for Q4 and projects total fee revenue around $3.0 billion. Shares rose 2% in pre-market trading.
Morgan Stanley (NYSE:MS) has delivered an average annual return of 20.6% over the past 5 years, outperforming the market by 8.04%. An investment of $100 in MS stock five years ago would now be worth $253.13, reflecting the significant impact of compounded returns. Currently, Morgan Stanley's market capitalization stands at $299.33 billion.
The global fund tokenization market is rapidly growing, with Wall Street giants entering the fray. A Goldman Sachs report shows that the asset management scale of tokenized assets reached USD 23 billion in the first half of this year, and it is expected to exceed USD 600 billion by 2030. Tokenized money market funds are leading the way, with BlackRock's BUIDL fund surpassing USD 2.9 billion. Goldman Sachs, in collaboration with Bank of NY Mellon, launched the first tokenized money market fund in the United States, marking the implementation of this innovative financial instrument. The improvement of the global regulatory environment and institutional investors' demand for liquidity and cost efficiency are driving this development
Charles Schwab CEO Rick Wurster announced at the Reuters NEXT conference that the firm will pursue more M&A deals to enhance capabilities for clients. Schwab is open to acquiring crypto companies if opportunities arise. The firm recently agreed to buy Forge Global for $660 million and plans to offer spot crypto trading by mid-2026.
