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Shaping tomorrowNovember 21 2023

Why banks are not tech firms

While banks are producing quite good results, mainly on the back of rising interest rates, why is this not being reflected in their market valuations?
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Why banks are not tech firms

I was asked to come on a news programme the other day to talk about the state of banking. The latest third quarter results have come in, and most of the banks have produced stonking results, thanks to rising interest rates. Increasing rates rapidly on loans, while dragging their feet on savings rates, has created a basis points differential that delivers excellent profits and returns to shareholders.

A few examples:

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