The banks are ready to boost investor profits…
According to Bloomberg, Rudloff believes, “Investment banking has a brilliant future”. He says banks have finally reached the point where they’ve shored up their capital requirements to protect against any future crisis.
And that means instead of stashing away capital all the time, the banks can use their capital to generate funds.
Add to this the fact that 2014 is the year where growth seems to have found a footing in both emerging and developing nations – then the potential to profit from capital is even greater.
All this means there’s more opportunity for banks to do what they’re supposed to do, act as an intermediary between those who have money and those who need money.
Look for banks that play by the rules and your profits could be huge
Take a look back seven years and you’ll see a rather different approach to business in the banking sector. Back then banks seemed to be less concerned about banking and more hung-up on trading. Simply put, all the big banks were trying to trade their own money to make profits as opposed to facilitating lending.
Now though, with the world packed to the brim with growth opportunities and businesses finally starting to expand again, they need money to fund their growth. And that means banks can start being banks again.
But that’s not the only way banks can profit.
As investors become more confident and optimistic about the markets, they want to get involved. And banks that are innovative about the products they create for people to start investing will make money.
I’m talking about banks profiting by creating things like CFDs and easy online share trading. These kinds of offerings will drive banking profits for years to come. And in my mind there’s one South African bank that’s a clear leader in this regard.
In fact, this bank makes up part of the Core Portfolio of
The South African Investor. And so far it’s already returned 358% in gains. And it’s only going to get bigger from here.
This bank’s spent millions developing its business in Africa and is finally ready to reap the rewards of its capital investments. It’s ready to make money, not from gambling with its own funds, but by providing investors, companies and retail clients with everything they could need from a bank.
Until next time,
Here’s to staying ahead of the game.