For a guy who’s been touting the de-leveraging over the last few years, this is some pretty bullish commentary (via David Rosenberg):
“I said several months ago that the financials were screening rather well in our sector work.
This was the one sector that underpinned overall profit growth in the revised Q3 national accounts data that were released last week.
Well, the FDIC just reported that US bank profits rose 6.6% on a YoY basis in Q3, to a six year high. Revenues eked out a 3% gain, the best top-line performance in three years. Loan loss provisioning was also down by one-fifth – a reflection of improved loan quality.”
Source: Gluskin Sheff