S&P has revised the outlook on various US banking majors including JPMorgan, BofA and Morgan Stanley on the back of improving bank regulatory track record, good financial performance prior to and during the pandemic and better funding.
- JPMorgan was revised to positive from stable on account of increased market share, good balance sheet metrics, limited asset quality problems and substantially improved earnings. S&P added that they could revise JPMorgan’s ratings higher if they revise up the ‘US Bank Anchor
- Morgan Stanley was revised to positive from stable on account of significant progress on executing strategic initiatives – the acquisition of E-Trade and Eaton Vance. S&P notes that these help reduce risk and diversify its revenue stream. S&P added that they could revise Morgan Stanley’s ratings higher if they revise up the ‘US Bank Anchor.
- BofA was revised to positive from stable due to market position of its deposits enhanced by scale, technology investment to counter industry disruptors and cautious risk management in areas of sales & trading, credit cards, mortgages.