...Net Income Higher: Fourteen of the eighteen banks included in this report saw higher net income in 2Q17 than in 1Q17. Quarterly results were higher a year ago for all but two (C and USB) of the featured banks. Highlights during the quarter included modest improvement in loan growth, higher spread income, controlled expenses, and lower credit costs. Many banks also reported record client assets in their wealth and asset management businesses. Given the stock market rally and the correlation in performance fees to market values, higher revenues in these businesses offset declines in trading and mortgage revenues for some. Virtually all reported much higher taxes following last quarter's adoption of new stock-based compensation accounting guidance. Despite a generally improving quarter, overall return metrics remain low. As an example, the median ROA during 2Q17 was just 1.07%, despite recent short-term rate hikes and low provision expenses which remain below historical averages. Loan Growth...
