Shares of JPMorgan Chase (JPM) have so far proven to be the best performer among the Big Four U.S. banks in 2016. But a reversal of fortune could be on the horizon for the New York-based financial giant, at least according to analysts with Berenberg Capital Markets.
Citing continuing regulatory costs and the impact of cheap credit — thanks to the Federal Reserve’s ongoing zero interest rate policy and recurring bouts of quantitative easing — the analysts said U.S. banks are “surrounded in a sea of debt,” and profitability is becoming increasingly challenging to find.
