The Institutional Risk Analyst

Are the Money Center Banks a Buy?

Bank equities fell in January after Q4 2025 earnings, despite solid results, as investors booked profits from a rally that began in October. Citigroup emerged as the top performer among the five major depositories, but the broader money‑center segment faces heightened risk. The article highlights that a flattening 2‑10 Treasury spread—now just over 0.5% versus 1.5% in 2021—compresses net interest margins, underscoring that relative spreads, not headline rates, drive bank profitability.