Financials Down Amid Tariff Threats, Greenland Spat - Financials Roundup

Shares of banks and other financial institutions fell as U.S.-European tensions over Greenland and tariff threats drove up Treasury yields.

KeyCorp logged higher profit and revenue in the fourth quarter and said it is well-positioned to increase capital returns to shareholders in 2026.

One strategist said the relative strength of big banks as compared to regional lenders in 2025 could reverse itself this year.

"JPMorgan, Citigroup, Bank of America had tremendous outperformance relative to the regional banks," said Eric Marshall, president of Dallas mutual-fund firm Hodges Capital.

"The regional banks do tend to be a little more interest rate sensitive...a steepening yield curve means they'll earn more on their credit spreads, and you'll see better margins."

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

01-20-26 1728ET