Big Banks Outperform Sector, But Risks Shine Bright

Impact · against what's priced in

The Q3 results are largely a non-event for valuations as the margin and income data align with existing market assumptions. JPM and C are delivering on trends the market already expects, while BofA's margin lag reinforces the market's refusal to price in any near-term acceleration.

BAC−0.10

Already priced in

The price assumes

absence of any near-term acceleration

Lagging peers with the lowest net interest margin at 2.16% reinforces the market's view that the bank is not seeing the revenue acceleration required to justify a higher valuation.

What BAC's price assumes · Sep 3

• C▲2710%
• net interest income▲700%
• q3 results▲333%
• JPM
• BAC
• banking
• earnings