Things have been slowly moving the other way and the Fed has picked up the pace of rate hikes since the start of 2017. On Wednesday this week, the FOMC raised the Fed funds rate by a quarter-point to 1.5%-1.75%, its first hike of 2018 after three hikes last year. Low interest rates had weighed on bank profits because they were earning lower interest on their cash and the rates at which they could lend to consumers for mortgages and other loans was also lower. For Q1 2018, the financial sector is expected to report 20% year-over-year earnings growth, the fourth highest out of all the sectors in the S&P 500, according to FactSet. Revenue is expected to increase 7.4% year over year, also the fourth highest out of the S&P 500 sectors.

Source: Forbes March 23, 2018 14:15 UTC