Signs of profitability in banking sector

Steve Chiotakis Apr 16, 2009
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Signs of profitability in banking sector

Steve Chiotakis Apr 16, 2009
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TEXT OF INTERVIEW

Steve Chiotakis: OK, let’s check in with Jim Dunigan, the Managing Executive of Investments at PNC Wealth Management. Jim, what’s making the biggest impact today?

Jim Dunigan: I think you see two things: one is the profit and earnings reports from JP Morgan, and then the other is the employment numbers on unemployment claims. I think those are the two drivers we’ll see today.

Chiotakis: What do these JP Morgan numbers say to you, these profit numbers that came out this morning, say to you about the rest of the bank earnings that we’re expecting?

Dunigan: I think you’re seeing some signs that there are some profitability in the banking sector, they can make money with the yield curb where it is and with the economy stabilizing. And I think you’ll start to see that bleed through to the rest of the financial sector on some better signs that we’re seeing some stability overall with the banking sector.

Chiotakis: Jim, housing construction numbers out today, the lowest number in 50 years. Is that making a difference?

Dunigan: It does, you know I think we’re seeing some signs of stability in the market, but you’re going to get some numbers which will throw us off course a little bit of that. And housing starts plunge, still shows there some work to do in the housing sector.

Chiotakis: All right. Jim Dunigan, Managing Executive of Investments at PNC Wealth Management. Jim, thank you.

Dunigan: You bet.

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