Banks enjoyed the low interest rate environment while they still had higher interest assets on the books. However, with interest rates stuck at record lows and margins compressing, banks are increasingly focusing on non-interest revenue. In order to maintain a relatively stable earnings stream, banks will need to focus on growing this piece of the banking puzzle.
In this video, Motley Fool banking analyst David Hanson tells investors which banks have a revenue mix that would be favorable in a continued low-rate environment.
With all of these headwinds, Citigroup's stock looks tantalizingly cheap. Yet the bank's balance sheet is still in need of more repair, and there's a considerable amount of uncertainty after a shocking management shakeup. Should investors be treading carefully, or jumping on an opportunity to buy? To help figure out whether Citigroup deserves a spot on your watchlist, I invite you to read our premium research report on the bank today. We'll fill you in on both reasons to buy and reasons to sell Citigroup, and what areas Citigroup investors need to watch going forward. Click here now for instant access to our best expert's take on Citigroup.