Buzzberg Cup Live

JPMorgan Sees Record Profit as Stock-Trading Climbs 86%

Watch on YouTube ↗  |  July 14, 2026 at 12:33  |  2:08  |  Bloomberg Markets
Speakers
Gerard Cassidy — Head of US Bank Equity Strategy, RBC Capital Markets
Jonathan Ferro — Anchor, Bloomberg Television

Summary

Gerard Cassidy discusses the banking sector after JPMorgan's record profit. He sees a favorable environment with resilient economy, loan demand, and strong capital markets, expecting robustness to persist. He prefers Main Street banks over Wall Street banks due to full valuations and better loan growth prospects.

  • JPMorgan reports highest quarterly profit with 86% equities trading surge.
  • Gerard Cassidy says banks enjoy resilient economy, loan demand, and strong capital markets.
  • Regulatory environment is as good as it gets, a big tailwind for banks.
  • He expects continued strength, though Q3 is seasonally slower, with a strong IPO pipeline.
  • Main Street banks are now more attractive than Wall Street banks.
  • Full valuations on investment banks and easier comparisons favor regional lenders.
  • Improving loan growth and yield curve steepening support Main Street banks.
Ideas
Gerard Cassidy Head of US Bank Equity Strategy, RBC Capital Markets 0:17
Banks benefit from favorable cycle tailwinds.
The banking industry is in a very favorable environment: the economy is resilient, loan demand is picking up, capital markets are incredibly strong, and the regulatory backdrop is as good as it's going to get, providing a big tailwind. The robust conditions are likely to continue, with a strong ECM/IPO calendar, though Q3 is seasonally slower.
KBE MED
Gerard Cassidy Head of US Bank Equity Strategy, RBC Capital Markets 1:18
Prefer Main Street banks over Wall Street.
Main Street banks are more attractive than Wall Street investment banks. Large money-center and investment banks have had a very good run and valuations are now full, requiring a continued record pace to keep working. In contrast, loan growth improvement, a healthy/steepening yield curve, and easier year-over-year comparisons make regional/Main Street banks more appealing.
KRE MED
Gerard Cassidy Head of US Bank Equity Strategy, RBC Capital Markets 1:18
Prefer Main Street banks over Wall Street.
Main Street banks are more attractive than Wall Street investment banks. Large money-center and investment banks have had a very good run and valuations are now full, requiring a continued record pace to keep working. In contrast, loan growth improvement, a healthy/steepening yield curve, and easier year-over-year comparisons make regional/Main Street banks more appealing.
Wall Street / Investment Banks MED
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This Bloomberg Markets video, published July 14, 2026, features Gerard Cassidy discussing KBE, KRE, Wall Street / Investment Banks. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Gerard Cassidy  · Tickers: KBE, KRE, Wall Street / Investment Banks